Lee Hyo-jin covers the Bank of Korea, the banking industry and broader financial news. Her previous beats include foreign affairs, North Korea and general reporting on Korean society.
Banks turn to rehiring retirees amid workforce restructuring
A person walks past the ATMs of various banks at a building in Seoul, March 8. Yonhap
By Lee Hyo-jin
After retiring in 2024 from a three-decade career at Woori Bank, a 55-year old man surnamed Lee is back at the bank on contract as a specialist handling post-loan management.
He was rehired in January to monitor loans and manage credit risk after disbursement.
"I applied after hearing about the rehiring program because I wanted to put my experience to use in my second career," Lee said. "I worked my way up to branch manager, so I can share that experience with younger staff. I'm also learning a lot from them in this fast-changing banking environment."
Korea's major banks are increasingly rehiring retired employees like Lee as they close branches and cut staff, tapping experienced workers to fill expertise gaps on the ground.
According to industry data, released Monday, the five major banks — KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank — have rehired 5,458 retired employees on contract between 2021 and February this year, averaging about 1,000 a year. About 290 were rehired in the first two months of this year alone.
These rehired bankers are increasingly filling gaps left by staff reductions as lenders push ahead with restructuring.
The five banks' combined workforce stood at 63,230 in 2025, down 1,418 from a year earlier, largely due to voluntary retirement programs. KB Kookmin posted the largest reduction, with 583 fewer employees, followed by Shinhan with 492, Woori with 344 and NH Nonghyup with 25.
As lenders continue to scale back offline operations, the number of branches at the five banks stood at 3,748 as of 2025, down 94 from a year earlier.
Industry officials said the rehired workers are being deployed to roles that require specialized expertise, including wealth management, corporate and investment banking and internal controls.
Woori Bank, which introduced a postretirement manager program last year and hired 18 retirees, has established a BIZ Advisor Center focused on corporate banking.
The lender plans to launch a broader postretirement support program this year that includes career consulting, job training and psychological counseling.
At KB Kookmin Bank, retired employees have been assigned to a newly formed team this month that supports small and mid-sized enterprises nationwide. They visit those businesses, particularly in regional areas, to provide tailored financial solutions.
Industry officials expect banks to continue rehiring retirees, citing cost efficiency.
Banks can lower labor costs by bringing back experienced workers on contract at pay below that of regular employees. They can also save on the time and expense of hiring and training new staff.
"Deploying retired staff is an efficient way to deliver results quickly, especially in areas such as corporate lending, where they already have experience and networks," a banking industry official said. "In that sense, it's a win-win model as banks benefit from experienced talent while retirees gain opportunities for a second career."