Brokerages, banks poles apart in post-virus hiring

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By Lee Kyung-min

Brokerages are rushing to hire new employees to better prepare for a series of upcoming initial public offerings (IPOs) and soaring demand in stock trading, a move to strengthen corporate manpower sharply contrasted by commercial banks seeking only IT specialties.

Large brokerages are expected to meet demands for expanded, in-depth coverage of environmental, social and corporate governance (ESG) drives, and consumer protection, a step crucial to continue the record-high profits of the past year.

But the need to enhance consumer services is not an immediate priority for commercial lenders, most of which have seen deteriorated business conditions due to reduced interest margins amid record-low borrowing rates.

Also pressuring the banks is digitization, an industry-wide trend defined by a drastic reduction in the number of bank branches and subsequent reduction in the number of employees. Not many people with IT expertise are willing to work for commercial lenders that are seen as slow to embrace new technologies and consumer demand for fast, more convenient services.

Mirae Asset Securities has hired 66 new employees this year, filling about 80 percent of 80 openings likely to be offered. It hired 78 new employees last year.

The firm recorded an operating profit of 419.1 billion won ($371 million) in the first three months of the year. The record-high figure is up more than 200 percent from a year earlier.

Korea Investment & Securities hired 54 new employees and 40 experienced employees as of April. It hired 155 new employees and 106 experienced employees last year.

NH Investment & Securities, which reported an operating profit of 374.4 billion won in the first quarter, up 596 percent from a year earlier, is expected to increase the number of new hires, although specific figures remain unclear.

The increase in hiring comes ahead of IPOs scheduled in the latter half of this year including Kakao Bank, Krafton, LG Energy Solutions and Hyundai Engineering.

“Securities firms are reporting all-time high profits, and so will hire a larger number of employees to sustain the growth momentum,” an industry official said.

Meanwhile, commercial banks are hiring those with IT experience to sharpen their competitiveness against the big tech rivals.

Woori Bank is planning to hire new employees for its digital and IT departments this month. The new employees will be able to earn a master's degree in business administration in digital finance at the Korea Advanced Institute of Science and Technology (KAIST) among other perks.

Shinhan Bank will hire new employees in the second half of the year, with strengthened requirements on digital literacy including data analysis.