Shinhan Bank to cut jobs via early retirement

Shinhan Bank, South Korea's leading lender, plans to remove jobs via a voluntary retirement program, continuing the wave of downsizing moves that swept through the sector last year, industry sources said Friday.

The bank plans to receive applications for voluntary retirement from its workers for about seven days starting next week, becoming the first financial institution this year to announce such a program.

The bank's labor and management agreed to adopt a wage peak system starting this year in line with the government's push for reforming the rigid labor market.

"The program focuses mainly on employees aged 55 and older, and around 190 officials will be eligible," a source said. "In return for the early retirement, workers will receive up to three years of annual salary." 

Late last year, the country's major banks made a series of job cuts to reduce costs and buttress their bottom lines.

In November, Standard Chartered Korea slashed 961 jobs, or 18 percent of its total employees, as part of its global restructuring program. Last month, KEB Hana let go of 690 workers. (Yonhap)