Bank workers in South Korea set to leave en masse and opt for voluntary retirement this year
People working in banks in South Korea are expected to quit this year. It has been reported that most of them will be retiring voluntarily, and thousands of people will take advantage of this offer.
Banks are now offering attractive early retirement packages to reduce labor costs, and employees will benefit. It has been said that this is not only due to the lucrative compensations, but that most of the employees of financial institutions are leaving due to the digital transformation.
According to The herald of Korea, the banking sector in South Korea no longer guarantees job security as before since everything is automated these days. With this, this sector of activity is experiencing a massive departure from early retirement of its workforce.
Banks are now striving to accelerate the digitization of their banking services, which also means that banks are turning to online operations, which will result in less physical work in offices. Ultimately, only a few people may be needed to run the business, and that is exactly why there is more job security for bank workers.
It has been reported that at the Seoul branch of Standard Chartered Bank, the company has already received 500 requests for voluntary retirement, which is equivalent to 12% of its total workforce. This would be the highest number of applicants for early retirement since 2015.
Standard Chartered Bank Korea seems to be accelerating its structural reorganization for its digitalization. As a result, more and more people want to take early retirement before losing their jobs in the near future. Additionally, claims are said to have increased after Standard Chartered increased its payment term to a maximum of 60 months’ salary.
Korea’s time mentioned that bank workers might also want early retirement after seeing Citibank Korea shut down its retail banking unit. Many employees were affected, but the bank offered good compensation at the official close of operations.
Meanwhile, KB Kookmin Bank, Shinhan Bank and Hana Bank have also reportedly received 300 to 800 early retirement applications this year as operations slowly go digital.