Subscribe
E-Paper
 |
By Lee Kyung-min
Bank employees are facing growing pressure to quit to make way for unemployed young people, as the Moon Jae-in administration presses financial firms to help improve the worsening job market, an industry official said Friday.
KB Kookmin Bank, whose wage negotiation talks with its union will continue through December, will determine how many people should leave before the end of the year.
Four hundred workers left KB in early 2018, a few months after they submitted letters of resignation around the end of 2017.
"No specifics have yet been made thus far. We cannot confirm anything other than the negotiations will continue," a KB official said.
As indicated by their apparent frustrated tone on the highly sensitive matter, the number is largely expected to be greater than that of last year amid a deteriorating bottom line in a protracted sluggish economy.
The heavy pressure continued after Financial Services Commission (FSC) Chairman Choi Jong-ku said in May that banks should go "all out" to consider reducing their workforces through "voluntary" resignations.
The pressure was in line with woeful job data which showed youth unemployment has kept increasing despite President Moon Jae-in's pledge to create more jobs.
Shinhan Bank saw about 700 workers leave in early 2018. More workers are expected to follow suit pressured by the government's continued stance on the issue.
Woori Bank has no immediate plans to follow suit, mostly due to the imminent issue to turn the bank into a holding company, a project that requires substantial company funds.
The bank said paying hundreds of those who resign in lump sum severance packages will not be considered until after it becomes a holding company.
"We do not have plans to ask for resignations in 2018, but no one can predict what will happen in 2019," an official from the bank said.
Only about 70 people have left this year, but the number could increase into the hundreds in 2019.
"We can work here until we turn 55, and from there on, people can make the choice whether to stay on or receive a lump sum and leave," the official added.
No immediate similar moves are happening at the state-run Industrial Bank of Korea (IBK) and Korea Development Bank (KDB), as management and unions have failed to come to an agreement on the "proper" amount of severance pay.
The Ministry of Strategy and Finance and FSC were considering giving an increased amount to workers at state-run financial services firms, but no agreement has been reached yet.
Meanwhile, banks are the latest financial services firms "pushed" to let more workers go following a card firm and an insurance firm.
Hyundai Card accepted resignation letters from a handful of senior executives Nov. 8.
The management of KB Insurance forwarded an option to the company union demanding that the latter collect letters of resignations in 2018 as part of its broader wage negotiation.
The push made by one of the top four non-life insurance firms in Korea was considered the possible beginning of massive, unwanted layoffs.
