The voluntary retirement season in the banking sector has officially begun. While some employees are preparing for the next chapter of their lives by receiving special severance payments worth hundreds of millions of won, this year, discussions about extending the retirement age have become more prominent, resulting in fewer applicants for voluntary retirement at some banks compared to previous years.

According to the financial sector on November 24, NH Nonghyup Bank accepted applications for voluntary retirement until November 21. Eligible applicants are general employees who have worked for at least 10 years and are aged 40 or older. These employees will receive a special retirement payment equivalent to 20 months of their average monthly salary at the time of retirement. Employees born in 1969 will receive a retirement payment equivalent to 28 months of their average monthly salary at the time of retirement.

Sh Suhyup Bank also accepted applications for voluntary retirement until November 17. For grade 1 or higher, employees must have worked for at least 18 years, and for grade 2 or lower, at least 15 years. For those born in 1969, the special retirement payment is set at 85% of the total personnel cost under the wage peak system (equivalent to 28 months of average monthly salary). Employees born in 1970 can receive up to 34 months of their average monthly salary, while those born in 1971 can receive up to 37 months. For other employees, the special retirement payment is equivalent to 20 months of their average monthly salary.

View of the headquarters of a commercial bank.

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Hana Bank implements a "pre-retirement special retirement" program every year for employees aged 40 and above, conducting it twice this year in January and July. The special retirement payment ranges from 24 to 31 months of average monthly salary, depending on the employee's rank. In the first half of the year, 214 employees applied, and in the second half, 49 employees applied, resulting in a total of 263 employees opting for voluntary retirement.

KB Kookmin Bank, Shinhan Bank, and Woori Bank are also expected to accept applications for voluntary retirement next month or early next year, following labor-management negotiations. Since this has been a regular annual process, similar procedures are expected this year as well.

Banks pay special retirement payments amounting to hundreds of millions of won each year for voluntary retirement. The average special retirement payment per person was as follows: Hana Bank (370.11 million won), Kookmin Bank (370 million won), Woori Bank (349.18 million won), Nonghyup Bank (322.4 million won), and Shinhan Bank (312.86 million won). At Hana Bank, there was even an employee who received a retirement payment exceeding 1 billion won. According to Hana Bank's semiannual report for the first half of this year, a manager-level employee who took voluntary retirement received a total of 1.06 billion won, combining statutory severance pay and special retirement payment.

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However, this year, the debate over extending the retirement age has become a variable. The government and ruling party are discussing legislation to extend the statutory retirement age from 60 to 65. Typically, bank employees either opt for voluntary retirement or enter the wage peak system around the age of 56 to 57. One bank official commented, "With growing expectations for an extension of the retirement age, the number of applicants has dropped significantly this year."

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