Banks to cut jobs due to slowing economy

Some local banks are considering offering voluntary retirement programs to their workers in a bid to cut costs amid a prolonged economic slowdown, industry officials said Tuesday.

NongHyup Financial Group said its flagship unit, NH Nonghyup Bank, is to let 411 employees go under a voluntary retirement program by the end of the year. NongHyup Financial also said 14 other employees in other affiliates are set to leave their companies in the coming weeks. NongHyup Financial said the outgoing workers will receive severance pay plus up to 26 months of salary per person.

Standard Chartered Bank Korea, a local unit of Britain-based banking giant Standard Chartered PLC, said some 200 employees are eligible for a retirement program, though it added that it remains unclear how many will apply for it.

Last year, Standard Chartered Bank Korea let about 960 employees go as part of the headquarters' global efforts to boost competitiveness.

Shinhan Bank and Woori Bank also plan to carry out retirement programs early next year.

Kookmin Bank, the country's biggest retail bank, said consultations are under way between its management and labor union over a possible retirement program.

"No decision has been finalized yet," a Kookmin Bank official said. He asked not to be identified, citing policy.

In July, Kookmin Bank slashed about 200 jobs. Currently, the bank has about 20,500 employees.

Major Banks in South Korea have made a series of job cuts in recent years to reduce costs and buttress their bottom lines. 

South Korean banks slashed about 1,450 jobs in the first half of this year and the total number of job cuts could rise by the end of the year when the retirement programs are finished.

The total number of bank employees in South Korea came to 132,170 in the first half of this year, the lowest level since late 2008 when it stood at 130,990, according to government data. (Yonhap)