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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, Aug. 24 — Despite reporting record profits, South Korea’s four major commercial banks are steadily reducing their workforce as digital banking expands and generative artificial intelligence (AI) accelerates labor efficiency initiatives.
According to regulatory filings analyzed on August 24, Shinhan Bank recorded the largest decline, with headcount falling by 532 employees year-on-year to 12,540 as of June. KB Kookmin Bank followed with a reduction of 473, bringing its total staff to 15,300. Woori Bank cut 180 positions to 14,038, while Hana Bank trimmed 87 employees to 11,916. Regular full-time positions declined most sharply at Shinhan (-548), KB Kookmin (-472), Woori (-365), and Hana (-127).
The downsizing has boosted labor productivity. Shinhan’s pre-provision operating profit (PPOP) reached KRW 3.31 trillion, translating into per-capita productivity of KRW 263.8 million. Hana posted KRW 3.07 trillion in PPOP, or KRW 257.9 million per employee, followed by KB Kookmin at KRW 230.8 million and Woori at KRW 165.3 million.
Hiring has also slowed. The four banks recruited 1,128 new employees in their 2023 regular intake, down 15% from 2022 (1,332).
Meanwhile, the efficiency drive has produced outsized severance payouts. In the first half of 2025, several retirees received packages exceeding KRW 1 billion (USD 750,000). At Hana Bank, the top five compensation recipients were retiring executives, with one individual collecting KRW 1.06 billion in severance alone. At KB Kookmin and Woori, retirees also dominated the top-five payout lists, receiving between KRW 870 million and KRW 996 million.
Although headcount is shrinking, some banks are rehiring retirees on short-term contracts. Last month, KB Kookmin Bank sought to reemploy former staff in roles such as anti-money laundering (AML) monitoring and group loan support. Compensation for these contract roles ranges from KRW 2.57 million to KRW 3.07 million per month, roughly half the bank’s current average annual salary of KRW 69 million.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
