Last year, the average performance bonus for executives at KB Kookmin Bank topped 300 million won per person.
According to data submitted by People Power Party lawmaker Lee Heon-seung, a member of the National Policy Committee, through the Financial Supervisory Service on the 26th, last year's KB Kookmin Bank executive performance bonuses totaled 14.2 billion won, or 315.21 million won per person. This is the first time in the past five years that KB Kookmin Bank executives' performance bonuses have exceeded 300 million won. The amount also rose sharply from 2023 (a total of 9.1 billion won, 221.31 million won per person).
Hana Bank's executive performance bonuses last year also totaled 8.9 billion won, or 110.4 million won per person, roughly doubling from 2023 (a total of 4.8 billion won, 71.2 million won per person).
Shinhan Bank's total performance bonuses for all employees were 148 billion won, up 3% from a year earlier, while Woori Bank's were 107.7 billion won, down 33% over the same period.
While banks increased performance bonuses, financial accidents instead rose. From January to August this year, the four major commercial banks recorded 74 financial accidents, with damages amounting to 197.2 billion won. This represents increases of 19.4% and 44.2%, respectively, compared with the financial accidents that occurred over the full year last year (62 cases and 136.8 billion won).
In response, criticism has emerged that management is pocketing performance bonuses tied to results while offloading losses from financial accidents onto society. The financial authorities are reviewing legislation to introduce a "clawback" system to recoup compensation when accidents occur to prevent such problems.
The current Corporate Governance Supervision Regulations for financial companies state that "if a loss occurs to a financial company in connection with the duties performed during the deferral period, the performance-based compensation scheduled for deferred payment shall be recalculated to reflect the realized loss," but the rules are vague, and critics have said actual application has been insufficient. It appears that strong measures are being pursued to claw back executives' bonuses even after retirement if a financial accident is revealed.
President Lee Jae-myung also pledged during this presidential election to "eradicate the shifting of responsibility for financial accidents," and the overhaul is expected to gain momentum.