The end of the year to early next year is a time when corporations' voluntary retirements and personnel transfers coincide. This year, the scope of voluntary retirements in the banking sector has expanded, and the age group eligible for promotion to branch manager has decreased. With the number of branch offices decreasing and a rise in non-face-to-face transactions, this is a desperate measure devised by banks to resolve personnel issues.
According to financial sources on the 6th, the issue of branch managers being born in the 1980s has emerged following the recent announcements of personnel appointments at Woori Bank and Shinhan Bank. Currently, most branch managers in the banking sector are from the 1970s generation, with over 20 years of service, and are in their late 40s to mid-50s. This is a rare phenomenon among national banks, which have been criticized annually for personnel bottlenecks.
At the same time, the age range for voluntary retirement is increasing. Last month, Shinhan Bank, which received applications for voluntary retirement, expanded the target from those aged 44 and older to include employees aged 38 and older. KB Kookmin Bank, which had received applications from those born before 1972 (aged 52 and older) last year, has also widened its scope to those born before 1974 (aged 50 and older). Additionally, the bank is encouraging voluntary retirement by offering unemployment support of up to 40 million won, which is more than last year's 34 million won.
As the age range for voluntary retirement increases, the number of voluntary retirees in the banking sector is expected to rise nearly 20% compared to the previous year. A total of 534 applications were received at Shinhan Bank, which concluded its voluntary retirement announcement last month. This number exceeds double that of the previous year's 234 applicants. NH Nonghyup Bank, which was the first among national banks to conclude voluntary retirement, recorded an increase of 20 to a total of 392 voluntary retirees compared to the previous year, while KB Kookmin Bank is expected to maintain similar or higher numbers than last year's 674. Hana Bank and Woori Bank are still in the process of counting.
The scale of voluntary retirements in the banking sector is on the rise. After the COVID-19 pandemic, as non-face-to-face transactions have increased and digital transformation has progressed, the necessity for physical branches has diminished. According to the Financial Supervisory Service, as of the end of October last year, the total number of domestic bank branches was 5,690, with a staggering 1,189 closures (17.2%) over the past five years. Additionally, banks are promoting voluntary retirements to increase new employee recruitment and to alleviate the long-standing personnel bottlenecks.
The calculations for bank employees are also becoming more complex. While voluntary retirees in their 30s are still rare, the demand among employees in their 40s to utilize their banking experience to move to small and medium-sized enterprises or savings banks increases before it becomes too late. In particular, banks allow retirees to take home an average of 500 million won, with the possibility of 1 billion won depending on their experience, leading them to seek to utilize this effectively.
In particular, the conditions and scale for voluntary retirements at the end of the year may change annually based on bank performance, prompting many employees to apply for voluntary retirement when conditions are favorable. There are also concerns that bank performance may worsen this year due to the Bank of Korea's interest rate cuts that began at the end of last year.
A representative of the banking sector noted, "The expansion of voluntary retirement is a proactive measure for banks to respond to the uncertainties in the domestic and external business environment and digital transformation. As more employees seek a second life, considering the future domestic financial situation, it is unlikely that voluntary retirement conditions will improve compared to now, leading to comparisons of retirement conditions each year."