From the Beginning of the Year, a Wave of Voluntary Retirement in Banks...Significant Lowering of Application Age

[Asia Economy Reporter Kwangho Lee] From the beginning of the new year, commercial banks are accepting voluntary retirement applications. To adjust manpower due to digital transformation, they are lowering the eligible age and offering exceptional conditions.

According to the financial sector on the 4th, Shinhan Bank is accepting voluntary retirement applications until the 11th from general employees at the deputy branch manager level or higher who were born after 1963 and have more than 15 years of service.

General employees at grade 4 or below, RS positions, indefinite contract personnel, and management support contract personnel born in 1966 with more than 15 years of service are also eligible.

Shinhan Bank will pay these employees a special retirement allowance of up to 36 months’ average monthly salary depending on their birth year.

Previously, Shinhan Bank conducted voluntary retirement twice in January and July last year, with about 350 employees leaving the company.

Hana Bank is also accepting voluntary retirement applications until the 7th. Eligible applicants are general employees born in the second half of 1966 who entered the wage peak system last year and those born in 1967.

Employees born in the second half of 1966 who apply for voluntary retirement will receive a special retirement allowance equivalent to about 25 months of their average monthly salary, and those born in 1967 will receive about 31 months’ worth.

Hana Bank is also implementing a quasi-retirement special retirement program. Eligible applicants are general employees with more than 15 years of service and aged 40 or older as of the 31st of this month, or those recognized as exceptions such as military leave personnel.

For these employees, the special retirement allowance for managers ranges from a maximum of 27 to 33 months of average monthly salary depending on age. For supervisors, it ranges from 33 to 36 months, and for clerks, it is 36 months of average monthly salary.

Exceptionally recognized personnel such as military leave employees will receive 24 months’ worth of average monthly salary as retirement pay. Employees who apply for voluntary retirement will be finally selected through a personnel committee review.

The labor and management of Kookmin Bank also agreed to accept voluntary retirement applications until the 6th. Eligible applicants are those born between 1966 and 1971, and as last year, they will receive a special retirement allowance of 23 to 35 months. Additionally, they will be supported with tuition fees of 3.5 million KRW per semester for up to 8 semesters or a reemployment support fund of up to 34 million KRW.

Woori Bank accepted voluntary retirement applications from December 20 to 28 last year. Those born in 1966 receive 24 months’ worth of average monthly salary, and those born after 1967 receive 36 months’ worth as special retirement allowance. Tuition support of up to 28 million KRW per child (up to 2 children), reemployment support of up to 33 million KRW, health check-up vouchers, and travel gift certificates worth about 3 million KRW are also provided.

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