Will the '800 Million Receipt' Record Be Broken... Banks Start Voluntary Retirement Process (Summary)

[Image source=Yonhap News]

[Asia Economy Reporter Buaeri] Banks are successively implementing voluntary retirement programs at the end and beginning of the year. Unlike in the past, there is a growing atmosphere in the banking sector where quite a few employees want to take voluntary retirement. Moreover, since major commercial banks recorded record-high earnings this year, expectations for voluntary retirement benefits have also increased. Some banks are even offering premiums compared to previous years.

According to the financial sector on the 19th, Woori Bank began accepting applications for voluntary retirement from today. Eligible candidates are those born before 1974 for managerial level, before 1977 for senior staff, and before 1980 for clerical staff. The amount of special retirement benefits is set at 24 months of average monthly salary for those born before 1967 who are subject to the wage peak system, and 36 months for the others. In addition to special retirement benefits, up to 28 million KRW per child for tuition fees, up to 33 million KRW for reemployment support, health check-up vouchers, and travel gift certificates worth about 3 million KRW are provided. Woori Bank will accept applications until the 27th. The retirement date is January 31 of next year.

NongHyup Bank also conducted voluntary retirement applications last month. Eligible candidates are employees aged 40 or older with more than 10 years of service across all ranks. Special retirement benefits range from 20 to 39 months of average monthly salary at the time of retirement. Considering that the highest standard last year was 28 months, the retirement benefit amount has increased by 11 months. The final number of retirees is known to be about 500.

Shinhan Suhyup Bank also accepted voluntary retirement applications around the same time. For managerial positions such as branch managers, those with more than 18 years of service are eligible, and for clerical staff such as section chiefs, those with more than 15 years of service are eligible. The amount of special retirement benefits is up to 37 months of salary.

Major commercial banks such as KB Kookmin, Shinhan, and Hana Bank are also expected to implement voluntary retirement from mid-December to early next year based on labor-management agreements, although not yet finalized. If 500 retirees come from NH NongHyup Bank, about 2,400 people will have left or will leave the five major commercial banks this year alone. Earlier this year, 674 people left KB Kookmin Bank, about 250 left Shinhan Bank, and 521 took voluntary retirement at Hana Bank by the second half of the year. Woori Bank also had 415 voluntary retirees at the beginning of the year.

In the past, there was a strong negative perception of voluntary retirement, but recently, due to high special retirement benefits and other factors, perceptions have changed significantly, according to banking officials. A representative from a commercial bank said, "Nowadays, there are even employees waiting for voluntary retirement, so it has become like an annual event," adding, "If voluntary retirement is not conducted, there might even be backlash."

In fact, last year, voluntary retirees from the four major banks were among the top 5 earners at each bank. At Shinhan Bank, five retirees received between 832 million KRW and 876 million KRW, which was more than the salary of Shinhan Bank President Jin Ok-dong (825 million KRW). At Hana Bank, five retirees also ranked in the top 5 with earnings ranging from 751 million KRW to 805 million KRW.

At Woori Bank, four out of the top 5 earners were voluntary retirees. Their total compensation ranged from 797 million KRW to 839 million KRW. At KB Kookmin Bank, two of the top 5 earners were voluntary retirees, receiving 795 million KRW and 833 million KRW respectively. However, these amounts include statutory retirement benefits, special retirement benefits, and earned income combined.

Another commercial bank official said, "In the past, labor unions tended to block voluntary retirement, but nowadays, it seems that agreements are reached smoothly reflecting employees' demands," adding, "Since banks performed well this time, expectations for retirement benefits are also higher."

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