The number of annual retirees from financial authorities and their affiliated public institutions rose 44% over the past five years. It means the outflow of key personnel is accelerating at organizations that, armed with "manpower," formulate domestic financial policy on the front lines and oversee and supervise financial markets. Lower salaries than commercial banks, controversy over regional transfer, and a conservative organizational culture are seen as factors. There are also concerns that the loss of top talent could lead to weakened domestic financial competitiveness.
An analysis by ChosunBiz of the "yearly number of retirees from the Financial Services Commission, the Financial Supervisory Service, and seven affiliated public institutions," obtained through People Power Party lawmaker Kim Sang-hun's office on the National Policy Committee on the 10th, showed that the number of retirees rose 44% from 610 in 2020 to 879 last year. As of the end of August this year, the number of retirees was 626, surpassing the full-year figure for 2020.
The number of retirees from the Financial Services Commission and the Financial Supervisory Service, which was 100 in 2020, rose 38% to 138 last year. Both the Financial Services Commission and the Financial Supervisory Service saw the highest number of departures on record last year. The number of retirees at the Financial Services Commission increased from 17 to 28 over the same period, and the Financial Supervisory Service from 83 to 110. At the Financial Services Commission, a ministry that top scorers among those who pass the Higher Civil Service Examination generally join, resignations among younger staff have been on the rise recently. Last year, three employees in their 20s — a Deputy Director and two Assistant Deputy Directors — resigned to enter law school, throwing the organization into an uproar. It was the first case of resignations from the Financial Services Commission to enter law school.
An official at the Financial Services Commission said, "It is true that resignations are increasing among public officials at Deputy Director level (Grade 5) and below," adding, "Low pay relative to workload, promotion backlogs, and a bureaucratic culture are problems." The situation is the same at the Financial Supervisory Service. In the past, mainly bureau and Deputy Minister-level officials resigned to move to executive positions at private corporations, but recently resignations among younger employees have continued.
Among financial public institutions, the Korea Development Bank had the most retirees. Due to the issue of the bank's transfer to Busan pushed by the previous administration, 185 employees packed up just last year. That is more than double the 77 in 2020. Over the same period, the number of retirees at Korea Asset Management Corporation (KAMCO) increased from 52 to 85. The Korea Credit Guarantee Fund (KODIT) also surged from 93 to 150. Not only retirees but also new applicants are decreasing. KAMCO's competition rate for new hires dropped from 97 to 1 in 2020 to 45 to 1 last year, halved. The Korea Deposit Insurance Corporation saw its competition rate for new hires fall from 120 to 1 to 62 to 1 over the same period.
The increase in retirees from financial authorities and affiliated public institutions is attributed to the widening average salary gap with private financial companies such as commercial banks. In 2015, the average salary at the seven major commercial banks (KB Kookmin, Shinhan, Hana, Woori, Industrial Bank of Korea, Citibank, and SC) was 79.85 million won, while the average salary at nine financial public institutions, including Korea Securities Depository (KSD) and Korea Technology Finance Corporation (KOTEC), was 88.83 million won. However, last year, a decade later, the average salaries reversed. The average salary at the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) surged 44.5% to 1.1542 billion won, while financial public institutions, which are subject to civil servant pay guidelines, saw salaries rise by only around 10%. Over the past five years, the civil servant pay increase rates were 0.9% in 2021, 1.4% in 2022, 1.7% in 2023, 2.5% in 2024, and 3.0% in 2025.
A source at a financial public institution said, "It is all too obvious that the salary gap with private financial companies will widen further going forward, and many employees lament that it is better to move elsewhere while they are as young as possible," adding, "Regional transfer, frequent rotational assignments, and vertical bureaucratism are influencing the wave of resignations."
Lawmaker Kim Sang-hun said, "The outflow of talent from financial authorities and affiliated public institutions should be regarded as a serious crisis that shakes the foundation of national financial policy," adding, "If the structural causes, including salaries, are not fundamentally addressed, it will be impossible to avoid a rapid weakening of Korea's financial competitiveness."