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Banks in dilemma over job creation

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Jobseekers line up to enter the venue for a job fair hosted by KB Kookmin Bank in this May 28 file photo. The nation's commercial banks are in a dilemma over their recruitment, due to government pressure to hire more workers despite a decline in demand for employees in the financial sector. / Korea Times file
Jobseekers line up to enter the venue for a job fair hosted by KB Kookmin Bank in this May 28 file photo. The nation's commercial banks are in a dilemma over their recruitment, due to government pressure to hire more workers despite a decline in demand for employees in the financial sector. / Korea Times file

By Park Jae-hyuk

The nation's commercial banks are having difficulty in making final decisions on their recruitment for the second half, due to the government pressure to hire more workers despite a decline in demand for employees in the financial sector, banking industry officials said Thursday.

Following an increase in non-face-to-face transactions driven by digitization in the bank industry, local banks have faced the necessity of organizational downsizing.

The Moon Jae-in administration's initiative for job creation, however, is attempting to force them to go against the general trend and hire more employees.

One of the government measures weighing on the banks is the Financial Services Commission's (FSC) forthcoming announcement of each bank's job creation "effect."

The financial regulator said in June that it will measure the job creation effects of the financial sector and announce detailed figures in August.

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

Back then, an FSC official was quoted as saying that "the purpose of the survey is to understand the current situation. We have no other intention."

Contrary to what the FSC official said, local banks have regarded the announcement as government pressure to hire more people. They have complained of the government's interference in their recruitment.

"Because of the digitization in banking, our demand for workers has decreased," said a bank official who declined to be named. "We will wait and see what other banks do to cope with this situation."

But ostensibly, local banks have promised to increase hiring in the second half, after the FSC announced the measure.

Woori Bank, which hired 300 employees in the first half of 2019, said it will hire an additional 450 in the second half.

Shinhan Bank, which employed 350 in the first half, will recruit 650 in the second half.

The other major banks, which have yet to make decisions on the numbers of new recruitments, also said they are considering hiring a number of new employees.

The banks, however, are also considering hiring more interns and seeking voluntary retirements in order to maintain profitability.

KEB Hana Bank, which already saw 274 employees take voluntary retirement in July 2018, has decided to offer voluntary retirement options twice a year on a regular basis.

It also announced it will discontinue regular open recruitment and hire new employees only if there are vacancies.


Park Jae-hyuk pjh@koreatimes.co.kr


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