Early-Year Wave of Voluntary Retirements at Credit Card Companies... Workforce Reduction Becomes a Reality

Five of Eight Major Credit Card Companies Implement Voluntary Retirement Plans

[Asia Economy Reporter Ki Ha-young] The card industry is consecutively implementing voluntary retirement programs. This is a preemptive measure in preparation for this year's worsening business conditions.

According to the industry on the 11th, Shinhan Card announced a voluntary retirement notice for the first time in two years. Employees with more than 10 years of service are eligible, and up to 35 months' worth of average monthly salary will be paid. Hana Card also posted an internal notice for voluntary retirement, offering 33 to 36 months of base salary as compensation.

Previously, KB Kookmin Card, Lotte Card, and Woori Card had already conducted voluntary retirement programs. KB Kookmin Card offered up to 36 months' salary for voluntary retirement, with about 10 employees applying. Lotte Card also targeted employees with more than 10 years of service, resulting in about 10 employees leaving the company. Lotte Card provided applicants with 32 to 48 months of base salary depending on their length of service, plus up to 20 million KRW for tuition fees. Woori Card paid up to 36 months of average monthly salary, with 12 employees opting for voluntary retirement.

The reason card companies are implementing voluntary retirement is due to the deteriorating business environment. Profitability is inevitably declining this year due to reduced merchant fees, decreased card loan income caused by strengthened household debt management, and platform competition with big tech companies. To prepare for this, they are cutting costs through workforce reductions.

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