Kbank, which was listed on the Korea Composite Stock Price Index (KOSPI) on the 5th, will carry out its first voluntary retirement program since its founding in 2017. The company said it is for employee welfare, but in the industry, the move is seen as a push to streamline the workforce to improve the organization's fundamentals.
According to the financial sector on the 14th, Kbank is currently accepting voluntary retirement applications from all employees. Applications are expected to close next week, and those wishing to retire are expected to complete the process next month.
Kbank's total workforce stood at 578 at the end of last year. The specific compensation details for those taking voluntary retirement have not been disclosed. Commercial banks typically pay voluntary retirees 20 to 30 months of base monthly salary.
A Kbank representative said, "Starting this year, we introduced an ongoing voluntary retirement program to institutionally support employees' demand for life planning and career transitions. It is a system for selective employee welfare, and all processes will be operated with respect for each individual's voluntary decision."
The industry takes a different view. A financial sector official said, "Rather than welfare, organizational restructuring after the listing and improving the workforce's fundamentals appear to be the real aims of this voluntary retirement. As a listed company, it now needs to manage its share price, and cutting headcount is the most common approach."
As of 10:30 a.m. that day, Kbank's share price was 6,300 won, 25% below the offering price of 8,300 won.