Major local banks carry out special retirement plan

Major commercial lenders have presented their employees with voluntary retirement schemes that offer “better” compensation in return, market watchers said Tuesday.

KEB Hana Bank began its three-day application period Monday, with those turning 55 this year being eligible for the program, according to the insiders.

The bank has 330 such workers, born in 1964, though the exact number of employees who can take advantage of the move is not known.

Starting this year, they are supposed to come under the so-called wage peak program, in which they receive reduced salaries until retirement. The country’s statutory retirement age is 60. In return for early retirement, the management of the bank offers the equivalent of up to 31 months of monthly wages, plus other support.

The retirement program is set to take effect on Jan. 31.

KB Kookmin Bank also rolled out its voluntary retirement program this week, and 600 employees are known to have applied.

Under this scheme, those who leave the company early will receive up to 39 months of salary plus other funds, the sources said, noting that the grant was larger than that paid last year.

In 2018, a total of 407 workers left the company on the same program, with the exact number for this year to be decided.

In the case of Shinhan Bank, 230 employees applied for its voluntary retirement program, which guarantees the equivalent of up to 36 months of monthly wages, plus other benefits.

Around 400 workers at Woori Bank are known to have volunteered for its special retirement package, which offers various incentives.

“As compensation conditions for this year’s retirement programs by major banks are quite fair, more people appear to be opting to leave their workplace to find a new life path,” an official from a local bank said.

Major banks in Korea have made a series of job cuts in recent years to reduce costs and buttress their bottom lines.