Senior bank workers uneasy about new hires
By Jhoo Dong-chan
Fears are mounting among branch managers and other senior employees at top banks over possible layoffs as lenders are moving to hire a large number of new workers in the coming months.
The top four — KB Kookmin, Shinhan, KEB Hana and Woori Bank — plan to carry out a massive recruiting drive in the second half of the year after not hiring new employees in the first half. They are expected to hire at least 2,250 people this year, up by more than 400 from last year.
“If somebody comes in, somebody needs to leave,” said a KB Kookmin worker who asked for anonymity.
“Banks are under pressure from the government to hire more young jobseekers since the youth unemployment rate is not expected to get better in the near future. They also need to reduce their branches across the country since more customers have started using online banking services instead of visiting branches. They won’t fire young workers. I believe senior workers or executives will be targeted.”
Woori Bank, which carried out a voluntary retirement program last July, received retirement applications from its workers once again last month.
A total of 1,011 senior workers left that July, and the bank said it aims to cut another 600 jobs through the next program, three times more than it hired in the first half of this year.
An industry insider said it is inevitable for banks to downsize their workforce due to the development of fintech.
“You can do wire transfers, check your balance and pay bills with your smartphone anywhere. There is no reason for them to spend money to rent venues for branches,” an NH Nonghyup worker said.
“Workers with higher salaries, including executives, are likely to leave the company though the program.”
According to audit reports banks submitted with the financial authorities, the number of workers in the nation’s banks was 111,173 by the end of 2017, down 3,602 from the previous year.
The banks also closed 251 branches nationwide.
Banks have become reluctant to expand their workforces following a series of hiring irregularities that surfaced earlier this year.
The Financial Supervisory Service filed complaints with the prosecution against five banks, including KEB Hana Bank and KB Kookmin Bank, over alleged irregularities in employing new staff. These allegedly included the two banks’ lists of candidates suspected of receiving “preferential treatment” in the hiring process due to connections to preferred VIP customers and government officials.