Increasing Remote Work and Banning Gatherings... COVID-19 Hits the Financial Sector (Comprehensive)

Return to Social Distancing Level 4 Quarantine Guidelines

On the 17th, when the morning temperature in Seoul dropped to minus 5 degrees Celsius, bringing a severe cold wave, citizens visiting the temporary screening clinic set up at Seoul Plaza in Jung-gu, Seoul, were waiting in the cold to get tested for COVID-19. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporters: Kim Jin-ho, Oh Hyun-gil, Ki Ha-young] As the resurgence of COVID-19, which seemed to be subsiding, intensifies, tension is rising in the financial sector as well. With the reinstatement of high-intensity quarantine guidelines to levels before the daily life recovery phase (With COVID-19), major financial companies are continuously raising their response levels. However, since the financial sector has already experienced the social distancing level 4 in the past, it is expected that their COVID-19 response will not face significant difficulties.

According to the financial sector on the 17th, major financial companies have already notified or are preparing enhanced guidelines for COVID-19 response at their headquarters or main branches. Common measures include ▲prohibition of company dinners and restraint on private gatherings ▲recommendation of non-face-to-face meetings ▲expansion of distributed work ratios ▲postponement of business trips and training sessions.

Major commercial banks have strengthened the quarantine guidelines that were relaxed after the With COVID-19 phase. Shinhan Bank has been operating a ‘Special Quarantine Management Strengthening Period’ from the 6th of this month until the 2nd of next month. Department dinners and gatherings among employees are completely banned from 6 p.m., and face-to-face meetings are also discouraged. Separately, internal changes to quarantine management operations are currently under review. It is known that the plan to increase the dual work system ratio in headquarters departments from the existing 20% to 40%, which corresponds to social distancing level 4, is being considered.

NH Nonghyup Bank is also discussing strengthening quarantine guidelines such as increasing and mandating the telecommuting ratio. It has issued guidelines for all employees in headquarters and business divisions to comply with personal quarantine rules and to refrain from private gatherings and dinners during the year-end and New Year holidays. Hana Bank has banned dinners and gatherings among employees except for customer hospitality necessary for business. It is currently reviewing a plan to increase the recommended distributed work ratio, which is set at over 30% of the total department members.

Currently, commercial banks are operating with shortened business hours by one hour to prevent the spread of COVID-19 at branches. They are actively responding to government quarantine measures such as limiting the number of waiting customers inside branches to 10 or fewer.

Policy banks are also raising their response levels. The Export-Import Bank is expanding the telecommuting ratio and placing special emphasis on quarantine at 28 local subsidiaries and offices overseas. The Korea Development Bank is also reviewing strengthening quarantine guidelines equivalent to social distancing level 4. A banking sector official said, "Internal discussions are actively underway to issue work guidelines based on strengthened quarantine rules starting Monday," adding, "It is highly likely that we will return to social distancing level 4."

Insurance and card companies have also taken swift action. Samsung Life Insurance has already increased the telecommuting ratio to 50% by department since last week. Kyobo Life Insurance is discussing increasing telecommuting by more than 30% again, which was eliminated after transitioning to With COVID-19. Samsung Fire & Marine Insurance is raising the telecommuting ratio up to 50% in the metropolitan and non-metropolitan areas, considering the COVID-19 spread situation by region. Hyundai Marine & Fire Insurance is reviewing a plan to increase the telecommuting ratio from the existing 20-30% to 50%.

The card industry is proactively implementing the highest level of measures such as banning dinners and gatherings and normalizing distributed work. Hyundai Card is expanding the telecommuting ratio from 50% to 70% and enforcing bans on dinners and business trips. Shinhan Card is currently operating telecommuting at a 30% ratio and is reviewing further expansion of the dual work system.

Meanwhile, if the COVID-19 spread continues, major financial sector events during the year-end and New Year holidays are likely to be canceled. In particular, the ‘Pan-Financial Sector New Year Meeting,’ the largest event in the financial sector, is expected to be canceled or held non-face-to-face again next year following this year.

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