Banks face hiring pressure from gov't

The file photo shows ATMs of major banks / Korea Times file

By Kim Bo-eun

Shinhan, KB and other banks are in a difficult position because they face decreasing demand for workers but the government is pressuring them to hire new employees to maintain the workforce at the current level, according to industry officials Friday.

Commercial banks, which recruited at job fairs earlier this week, are mulling over the scale of recruitment for the latter half of the year. This takes place as financial authorities are in the process of compiling and inspecting data on job creation at banks.

The Financial Services Commission (FSC) is set to unveil the results of the inspection next month. The FSC did not respond to calls about the matter.

The Financial Supervisory Service is also involved in the process of collecting data, but declined to comment on the matter.

The FSC in June stated the need for the finance sector to contribute to job creation, and said it would conduct the evaluation.

Eight commercial banks ― Shinhan, KB Kookmin, KEB Hana, Woori, NH NongHyup, Suhyup, Standard Chartered and Citi ― and six provincial banks ― Daegu, Busan, Kyongnam, Kwangju, Jeonbuk and Jeju ― are subject to the FSC's survey.

According to media reports, the banks are evaluated on how much they are contributing to job creation by looking into not only direct employment by banks, but also indirect employment through jobs that have been created through outsourcing.

Sources said the FSC will not reveal figures of banks on an individual basis, but the inspection and unveiling of results itself is seen as a burden for banks. This comes at a time mobile transactions and automation have led to shutdowns of bank branches and a reduction in the workforce. Banks, however, were careful to speak about the issue.

“It is true that demand for workers has fallen due to digitization,” one bank official said.

“But recruitment takes place according to the bank's strategy and the digital division is also hiring the personnel it needs.”

Another bank official also agreed “demand for workers has fallen as work performed by employees is being replaced.”

An official of another bank said “We have had voluntary retirement by the baby boomer generation, which has created demand for new workers.”

Shinhan Bank's recruitment target for this year is 1,000 employees, which is 100 more than the previous year. Woori Bank's target for this year is 750, which is the same a year earlier. Kookmin and KEB Hana banks are in the process of deciding their targets for this year.