Korean banks are continuing layoffs despite record profits last year. Kookmin, Shinhan, Woori and KEB Hana, the four largest banks in Korea, let go of about 2300 workers through voluntary retirement packages between the 2nd half of 2017 and the beginning of this year.
The banks spent KRW 1.04 trillion (USD 963.05 million) on the voluntary retirement packages. In July 2017, 1011 workers left Woori Bank. The number leaving represented a great increase from the year before, and decreased the total number of workers at Woori Bank from 15,649 in 2016 to 14,356 in 2017. About 700 workers left Shinhan Bank through a voluntary retirement package last month. Kookmin Bank offered its own such packages to workers to whom the wage peak system applies, and those to whom it will soon apply. About 400 personnel accepted the package and left the bank. KEB Hana Bank made the same offer to workers to whom the wage peak system applies, and 207 workers left the bank.
While the banks reduce their workforces, they have not set new recruitment schedules. Shinhan and Woori Bank are working on new recruitment plans, but no specific target for new hires has been given. KEB Hana and Kookmin Bank have not set any particular recruitment schedule as criminal investigations are ongoing against both regarding unfair recruitments practices.