"The Real 'God's Workplace' Is Elsewhere... Employees Resign for a 23 Million Won Pay Raise"

Employees Leaving State-Run Banks
Male Turnover Rate at Korea Development Bank Triples from 3% to 9% in Four Years
Lower Salaries than Commercial Banks and Concerns over Regional Relocation

There is growing analysis that the popularity of state-run banks, once referred to as "God's workplaces," is no longer what it used to be. Over the past four years, turnover rates have risen significantly, with a particularly noticeable increase in the departure of male employees.

According to ALIO, the public institution management information disclosure system, the turnover rate for male employees at Korea Development Bank last year stood at 9.0%. This figure is three times higher than the 3.0% recorded in 2021. In contrast, the turnover rate for female employees rose only slightly, from 1.5% to 1.6% during the same period.

IBK Industrial Bank exhibited a similar trend. The male turnover rate jumped from 1.7% in 2021 to 6.2% last year, while the female turnover rate increased from 1.0% to 1.3%. At Export-Import Bank of Korea, the male turnover rate increased from 3.2% to 4.1%, and the female turnover rate rose from 0.7% to 2.6%. These figures include not only voluntary resignations but also retirements upon reaching the official retirement age.

IBK Industrial Bank Headquarters. IBK Industrial Bank

The average length of service is also declining. The average tenure for regular employees at Korea Development Bank decreased by 14 months, from 199 months in 2021 to 185 months last year. At Export-Import Bank of Korea, the figure fell from 155 months to 151 months, and at IBK Industrial Bank, it shortened from 209 months to 195 months.

Industry insiders attribute this trend primarily to the narrowing salary gap between state-run banks and major commercial banks. In the past, the average annual salary at state-run banks was higher than that at commercial banks. However, since 2019, the gap has narrowed rapidly and has now been reversed.

Last year, the average annual salary for regular employees at the three major state-run banks—Korea Development Bank, IBK Industrial Bank, and Export-Import Bank of Korea—was 115.94 million won. This is approximately 4 million won less than the average annual salary of about 120 million won at leading commercial banks. In particular, IBK Industrial Bank's average compensation for all employees last year was 97 million won, about 23 million won lower than its commercial bank counterparts.

State-run banks compete in the same financial sector recruitment market as commercial banks. However, due to their status as public institutions, they are subject to total wage management policies, which restrict the extent of wage increases—a factor also cited as a limitation.

Additionally, the possibility of relocation to provincial areas is considered another source of anxiety for employees. Recent discussions about relocating state-run banks have heightened internal unease. In fact, when the relocation of Korea Development Bank to Busan was promoted in 2023, there was a noticeable trend of younger employees seeking new positions elsewhere.

The National Financial Industry Labor Union recently issued a statement opposing the relocation of state-run banks to provincial areas, arguing that "finance is an industry where network effects and economies of scale are maximized, and the concentration of capital and information guarantees innovation and efficiency."

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