Due to sluggish domestic demand and low interest rates in Korea, banks continue to lay off workers. Banks in Korea employed a total of 115,516 people at the end of September 2016, down 1,507 year-on-year (117,023 in September 2015).
Commercial banks reduced their workforce the most, shedding 1,172 of 72,669 jobs, bringing the total employed to 71,497. The number of workers at specialized banks is also down 302 persons, from 32,573 to 32,271. Korea Development Bank reduced its workers the least, dropping 12 to bring the total size of its workforce from 3,508 to 3,496. The number of workers at local banks dropped from 11,781 to 11,748, a difference of 33 employees.
This trend seems to continue this year amid the economic slowdown and growing risk management pressure from the US interest rate hikes and massive household debt.
By the middle of January 2017, 2,800 workers, mostly from middle management level, are known to apply for voluntary retirement programs. This is the largest number of voluntary retirements since 3,244 workers voluntarily retired in 2010.