Banks Lay off Thousands of Staff

Commercial banks are laying off thousands of staff as they move their business online.

KB Kookmin Bank has been accepting voluntary retirement applications since Wednesday. Staff born between 1967 and 1972 are eligible for a package of up to 35 months severance plus up to W34 million for re-employment training and tuition assistance for children amounting to W3.5 million per semester for four years (US$1=W1,265).

Woori Bank closed voluntary retirement applications until Tuesday for workers born between 1967 and 1980. It will pay severance of 36 months of salary and W33 million for re-employment training. 

NH Nonghyup Bank, which has been taking voluntary retirement applications since Nov. 18, included workers born in 1982, who are only 40 years old, while Shinhan and KEB Hana banks plan to announce voluntary retirement programs in early January.

The country's top five lenders already laid off more than 2,000 workers last year through redundancy programs. They are estimated to have achieved record earnings this year but are streamlining operations as offline branches lie empty.

The public disclosure announcements of 16 banks show that their total workforce fell from 107,573 in the third quarter of 2021 to 104,063 in the same quarter this year. The biggest contributor was Citibank Korea, which shut its retail banking operations here, costing 1,138 people their jobs.

KEB Hana laid off 622 workers, Woori 571, KB Kookmin 258 and Shinhan 203.