Business · Companies · 1 hr ago

South Korea’s five largest banks cut 4,080 permanent jobs as contract roles rise

South Korea’s five largest banks cut 4,080 permanent jobs as contract roles rise

South Korea’s five largest commercial banks cut 4,080 permanent jobs between the end of 2022 and July, while adding 1,048 non-permanent roles.

The figures cover KB Kookmin, Shinhan, Hana, Woori and NH NongHyup banks, and total staff fell by 3,032.

KB Kookmin had the biggest permanent-job decline, with 2,376 fewer staff in those roles.

The shift is linked to the growth of mobile and online banking, branch streamlining and large-scale voluntary retirement programs.

Banks have reduced traditional branch roles while increasing some contract positions for routine or specialist work.

The changing mix has raised concerns about job security, safeguards against financial misconduct and the quality of customer service.

A lawmaker has called on financial regulators to examine how these staffing changes affect employment stability, internal controls and services for customers.

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What people are saying

Park Sung-hoonPeople Power Party lawmaker
Financial authorities should closely examine the effects of these changes on job security, internal controls and financial consumer services.
via Donga Ilbo
A commercial bank officialBank industry representative
The financial sector’s demand for labor is fundamentally changing with the AI transition and the expansion of non-face-to-face transactions.
via Maeil Business