An unusual crackdown on lunchtime has swept the Yeouido securities area. Some have voiced concerns that the strict enforcement of work regulations does not consider the specialties of securities professionals. Due to the nature of the work, which requires taking on high risks in pursuit of high revenue rather than stable earnings, securities professionals are sensitive to information, necessitating numerous external tasks and often demanding a flexible work path.
Notably, all of the securities firms emphasizing work regulations belong to bank-centric financial holding companies. Some large firms, including Shinhan Investment Corp., Hana Securities, and KB Securities, recently issued internal notices instructing employees to adhere strictly to working hours, including lunchtime.
Securities firms embarking on what is called 'attendance control' argue that the directives are nothing extraordinary. Lunchtime and working hours are basic regulations to be observed by everyone, and it is natural for management to regularly remind employees to adhere to these rules.
However, the recent notices from certain securities firms carry significant implications. Firstly, this notice appears to be related to a large financial incident that raised concerns about internal controls at some securities firms. By highlighting basic work regulations that should be followed, the firms seem to aim at elevating the tension among employees.
Moreover, the notices about attendance have little relevance to traditional revenue departments like Investment Banking (IB) or sales divisions. These departments often meet external contacts to build human networks, meaning that staying in the office according to work regulations can actually be seen as neglecting their duties.
Strictly speaking, the order to observe the set lunchtime targets primarily support staff employees. A representative from a securities firm noted, "A few years ago, it was easy to make money through real estate project financing, but now, one must fiercely compete in the IB and retail sectors just to achieve revenue." They added, "Tightening the working attitude of employees who sit in the office is linked to this market environment."
Attention has also been drawn to the fact that all securities firms stressing work regulations are affiliated with financial holding companies centered on banks. A financial investment industry insider remarked, "There's no reason to impose different work regulations on those in Yeouido, where time is money. A notice to traditional securities professionals, who are sensitive to incentives, that they must keep a one-hour lunch break, is comedic; however, it makes sense if it comes from a bank-centered financial group."
Shinhan Investment Corp. was the first to raise issues concerning work attitudes. Shinhan Financial Group mandated compliance with the one-hour lunch break and prohibited unnecessary movement during working hours, leading Shinhan Investment Corp. to enforce strict adherence to work attitudes.
KB Financial Group has followed suit, emphasizing lunchtime compliance for employees, while Hana Securities has also issued notices. Hana Securities informed employees via email of disciplinary actions taken against those who excessively used lunch time or repeatedly arrived late, including suspensions and demotions.
In particular, these securities firms affiliated with financial holding companies often have leaders from banking backgrounds, which naturally instills a banking-style culture within the organization. A representative case is Shinhan Investment Corp. Shinhan Investment Corp. transitioned to a three-CEO system this year, naming Lee Seon-hoon, who has a background in securities, along with Jeong Yong-wook, responsible for retail and asset management, and Jeong Geun-soo, in charge of corporate finance and real estate finance. The newly appointed Jeong Yong-wook and Jeong Geun-soo have built their careers at Shinhan Bank.
Kang Seong-mook, CEO of Hana Securities, also followed a similar path, joining Hana Bank in 1993 and working there until 2020.
Of course, other securities firms also have work regulations. Especially after the introduction of a 52-hour work week and the implementation of remote work during the COVID-19 pandemic, securities firms have been operating under stricter work regulations compared to before. While departments with numerous external schedules may not be expected to adhere strictly to work regulations, those in support departments cannot ignore these rules.
A representative from a large securities firm stated, "For securities professionals, meeting external contacts to exchange information is an extension of their work, and if we do not flexibly apply work hours according to departmental specifics and only operate based on principles, it will inevitably reduce work efficiency."
Naturally, there are opinions that suggest how desperate the company must be to issue such notices. An employee from a securities firm who claimed to have 'eaten bank food' said, "When I first came to Yeouido, lunchtime usually started around 11:30 a.m., but somehow it started shifting to 11 a.m., and these days I notice colleagues beginning to leave by 10:40 a.m." They continued, "The return times haven't changed much, so I understand the company's perspective."