Despite Record-Breaking Profits, Financial Firms Tighten Discipline with Anti-Negligence Notices and Weekend Meetings

Major financial institutions, including the four major financial holding companies, are strengthening organizational discipline through measures such as strict observance of lunch breaks, implementation of focused work hours, and weekend executive meetings, despite having recorded their highest-ever earnings. This move is seen as a reaction to a sense of crisis that profitability and management stability may decline during the process of reducing the growth of household loans in line with government guidelines, and expanding productive and inclusive finance, all amid growing criticism over so-called "interest business."

Front view of the head offices of banks, which are major affiliates of the four major financial holding companies (KB Kookmin, Shinhan, Hana, Woori). Each company

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According to the financial sector on April 12, Hana Bank regularly sends official notices to its employees containing reminders on preventing negligence and financial incidents, among other key matters.

Through internal broadcasts, the bank designates 9 a.m. to 6 p.m., excluding the lunch hour, as "focused work hours" and encourages the development of a highly engaged organizational culture. Similarly, NH Nonghyup Bank operates two focused work periods per day: from 10 a.m. until lunch and from 2 p.m. until the end of the workday.

Shinhan Financial Group and its affiliates are focusing on increasing the efficiency of meetings and lunch breaks. Shinhan Financial Group operates its own system, the "On-Time System," which centers on adhering to meeting times and minimizing unnecessary meetings.

A Shinhan Financial Group representative explained, "At the holding company level, we provide On-Time System guidelines to subsidiaries to promote immersion in work and a productive organizational culture." Shinhan Bank and Shinhan Card also frequently remind employees to observe the one-hour lunch break rule.

Shinhan Card manages organizational culture by cautioning those who do not comply with the lunch break. Early last year, CEO Park Changhoon referenced Visa's "sandwich lunch" and stressed the importance of observing lunch hours.

At that time, CEO Park said, "For financial professionals, keeping promises is fundamental, and observing work hours and lunch breaks is part of that. While it may be difficult to fully implement the sandwich lunch system, it is desirable to honor the commitment to a one-hour lunch break."

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Some commercial banks and secondary financial institutions convene weekend meetings for department heads and executives when major issues arise. KB Financial Group is a representative example. After the new CEO took office early last year, KB Kookmin Bank and KB Kookmin Card temporarily held weekend meetings, but now flexibly operate them only when significant internal or external issues occur.

A KB Kookmin Card representative explained, "Last year, we temporarily held weekend meetings due to several major issues, such as the recalculation of eligible cost for fee rates and the inclusion of card loans in the debt service ratio (DSR) regulation."

In the insurance sector, where in-person sales account for a large proportion of business, mechanically applying the one-hour lunch rule is difficult. However, some companies-such as Samsung Financial Networks (Samsung Life, Fire, Securities, Card, and Asset Management)-maintain organizational tension in line with the group's "six-day workweek for executives" policy.

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Within the financial sector, there is a consensus that a rigorous work environment is unavoidable, even amid the adoption of measures such as the 4.9-day workweek (with employees leaving one hour early on Fridays) and the spread of the 52-hour workweek. This is because, although record profits are expected again this year, maintaining profitability will be challenging due to the government's tightening of household loan regulations and demands for expansion of corporate and inclusive finance.

According to financial information provider FnGuide, as of April 9, the four major financial holding companies are expected to post an estimated 5.238 trillion won in consolidated net profit attributable to controlling shareholders for the first quarter, a record high and a 6.3% increase from 4.9289 trillion won in the same period last year.

A financial industry official commented, "Although it is no longer possible to force overtime in the era of the 52-hour workweek, lunch break management and weekend meetings during urgent issues have long been established as the minimum measures for enhancing management efficiency."

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