Profit of 16 trillion from interest loans…Bank thresholds have become even narrower

Despite recording the highest net profit in history, major banks are showing reluctance in hiring new employees. The banking sector cites reasons such as digital transformation and branch consolidations, but there is rising criticism that they are neglecting job creation while reaping enormous interest profits.

According to data submitted by the Financial Supervisory Service to Kim Hyun-jung, a member of the Democratic Party, the four major banks – KB Kookmin, Shinhan, Hana, and Woori – hired a total of 1,197 new employees through regular recruitment last year, a decrease of about 20% compared to the previous year.

Shinhan Bank reduced its hiring from 297 to 171, Woori Bank from 500 to 382, and Hana Bank from 441 to 384. KB Kookmin Bank was the only one to see an increase, hiring 260, up by 6.

The banks have not even fulfilled the number of hires they planned at the beginning of the year. Shinhan had originally announced plans to hire 200, while Hana Bank reported intentions to hire 400, but actual recruitment fell short of these numbers. The planned hiring scale for the first half of this year has also been further reduced. The total number of candidates expected to be hired by the four major banks is only 540, which is less than half of last year's annual hiring volume.

Fewer new hires, but rising salaries…"The ladder of employment has disappeared"

Opportunities for employment in the banking sector are rapidly dwindling. Internet banks are also maintaining a focus on hiring experienced professionals, raising the barriers for new entrants. Kakao Bank hired only 5 new interns last year, K Bank 8, and Toss Bank just 1. In contrast, experienced hires at these three banks totaled 264, 104, and 226, respectively.

Meanwhile, while new hiring has decreased, the compensation for existing employees has been steadily rising. The average salary per person at the four major banks last year was 118.4 million KRW, an increase of over 2 million KRW compared to the previous year. Hana Bank had the highest salary at 120.61 million KRW, followed by KB Kookmin Bank (120 million KRW), Shinhan Bank (119 million KRW), and Woori Bank (114 million KRW). Notably, Shinhan Bank saw the largest increase of 6 million KRW compared to the previous year.

The special severance pay given to those taking voluntary retirement was also around 310 million to 360 million KRW per person, effectively allowing them to hold both high salaries and generous retirement packages.

Banks have their own stance on hiring reductions

Banks maintain that the contraction in hiring is an "inevitable measure due to changes in the digital work environment." The number of domestic branches of the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) has decreased from 3,927 in 2023 to 3,790 currently. With digital transformation, the demand for in-person branch staff has declined, while the demand for experienced talents in IT fields such as big data and AI has increased.

Nonetheless, despite achieving record profits, the banking sector is showing a lukewarm attitude toward employment. Critics are voicing concerns that "they are kicking away the ladder of entry for young people."

A representative from the financial sector stated, "When banks emphasize social responsibility, they are loud, but when it comes to providing jobs for the youth, they are silent." He added, "Only by ensuring both the quality and quantity of employment alongside their performance can the true social value of finance come to life."

Image sources: Photo=Insight