Talent-Attracting Internet Banks... Record-High Voluntary Retirement at Commercial Banks

Inbaeng, Recruiting in Various Fields
Commercial Banks Expected to Lay Off Around 4,000 This Year

[Asia Economy Reporter Kiho Sung] As this year is expected to see a record number of bank employees leaving traditional banks, internet-only banks have emerged as talent black holes. Unlike in the past when internet banks focused mainly on hiring technical personnel, they are now attempting to recruit talent across various fields to match their rapid growth and expansion.

According to the financial sector on the 8th, the total number of employees at the three internet banks?Kakao Bank (around 1,000), K Bank (around 400), and Toss Bank (around 200)?is approximately 1,600.

Kakao Bank increased its workforce more than threefold from about 300 employees at its launch in July 2017 within four years, and K Bank also doubled its staff compared to last year (around 200). These rapidly growing banks are actively recruiting to further expand their presence. Recently, they have broadened their hiring scope beyond IT specialists to various fields. Kakao Bank is currently recruiting for positions such as deposit product planners, card process planning and operations staff, and onboarding and corporate culture managers. K Bank is also selecting personnel for labor management (ER), credit data analysis, and external reporting roles. Half of the 50 people hired this year were non-development positions. Toss Bank, which officially opened last month, is also conducting ongoing recruitment across diverse job categories. Recruitment related to credit card expansion is particularly noticeable. An official from an internet bank hinted, “For the current recruitment, inquiries through the recruitment website have increased about threefold compared to usual, showing great interest.”

These banks have offered exceptional conditions to attract talent. Toss Bank, like Toss, pays a referral bonus of 5 million KRW if an employee recommends a candidate. They promise salaries up to 1.5 times higher than the candidate’s previous company, along with stock options or a signing bonus from Toss Bank.

On the other hand, the scale of personnel leaving traditional banks, where record profits are virtually guaranteed, is expected to reach an all-time high.

Korea Citibank, which recently decided to withdraw from retail banking, is accepting voluntary retirement applications until the 10th. Since the 28th of last month, Citibank has expanded the scope of voluntary retirement to include not only retail banking but also corporate banking employees. Considering that Citibank currently has about 3,400 employees, industry insiders predict that more than half of the mid-to-small retail banking staff may apply for voluntary retirement.

Including SC First Bank, which is conducting voluntary retirement until the 15th of this month, and KB Kookmin Bank, Shinhan Bank, and Woori Bank, which have already handled related matters, it is estimated that about 4,000 bank employees will be packing their bags this year.

The financial sector analyzes that the demand for personnel in banks is decreasing due to the increase in non-face-to-face financial transactions, and accordingly, banks have improved voluntary retirement conditions during a period of strong performance driven by household loan growth to reduce their workforce.

However, internet banks say that more time is needed for hiring new employees. An internet bank official said, “Internet banks are in a growth phase compared to traditional banks, so experienced professionals who can be immediately deployed are needed,” adding, “Hiring new employees will be considered after the business and industry stabilize.”

This content was produced with the assistance of AI translation services.