KB Kookmin Card Conducted Voluntary Retirement Last Month... Growing Demand for Workforce Adjustment?

Payment Conditions for Up to 36 Months' Wages, Over 10 Applicants

[Asia Economy Reporter Ki Ha-young] KB Kookmin Card recently conducted a voluntary retirement program.

According to industry sources on the 21st, KB Kookmin Card carried out the voluntary retirement last month under the condition of paying up to 36 months' salary. A KB Kookmin Card official said, "We conducted the voluntary retirement last month, and about 10 people applied."

Woori Card is currently known to be negotiating with the labor union regarding the voluntary retirement issue. Lotte Card, which had about 200 voluntary retirements last year, has no additional plans within this year. BC Card, Shinhan Card, Hyundai Card, and Hana Card also have no plans for voluntary retirement.

While large-scale voluntary retirements are being conducted in the banking sector this year, the reduction of personnel in card companies is small because there are not many offline employees. The good performance this year also had an impact. The cumulative net profit of eight card companies for the third quarter of this year recorded 2.2269 trillion won, a 32% increase compared to the same period last year.

However, there is a possibility that demand for workforce adjustments such as voluntary retirement will increase next year. This is because financial authorities are expected to include card loans in the total debt service ratio (DSR) regulation starting January next year as part of strengthening household debt management, which is anticipated to worsen the profitability of card companies. Additionally, with the expected reduction of card merchant commission rates next year, further revenue decline is inevitable.

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