South Korea's five largest commercial banks, long seen as prized employers with average pay topping 100 million won, have been shedding permanent staff while expanding their non-regular workforce. Permanent positions fell by more than 4,000, while non-regular jobs rose by more than 1,000 over the same period.
The number of permanent employees at the five banks — KB Kookmin, Shinhan Bank, Hana Bank, Woori Bank and NH NongHyup Bank — dropped by 4,080 between the end of 2022 and the end of July this year, according to data submitted by the Financial Supervisory Service to Rep. Park Sung-hoon of the People Power Party, a member of the National Assembly's National Policy Committee, on the 21st. Non-regular workers increased by 1,048 over the same stretch. Total headcount fell by 3,032.
KB Kookmin Bank saw the sharpest shift in employment structure. Its permanent staff shrank to 12,614 at the end of July from 14,990 at the end of 2022, a decline of 2,376, or 15.9%. That accounts for 58.2% of the total drop in permanent jobs across the five banks. Non-regular workers, by contrast, rose to 2,566 from 2,136, an increase of 430, or 20.1%. Overall headcount fell by 1,946, or 11.4%.
At Woori Bank, permanent employees fell to 12,336 from 12,855, a decline of 519, or 4.0%. Non-regular workers jumped to 1,194 from 690, up 504, or 73.0%. With non-regular hires effectively filling the gap, total headcount slipped by just 15.
Hana Bank cut 389 permanent positions and added 661 non-regular workers, the largest increase in non-regular staff among the five banks.
Shinhan Bank reduced both permanent employees, down 796, and non-regular workers, down 421, bringing total headcount down by 1,217. NH NongHyup Bank left its permanent headcount unchanged while cutting 126 non-regular positions.
The shift is attributed to a combination of branch consolidation driven by the expansion of mobile and contactless banking and large-scale voluntary and early retirement programs. Banks have steadily trimmed permanent staff who handled traditional teller duties while hiring more non-regular workers for routine tasks or on specialist contracts.
Industry observers caution that weaker job security and a growing share of non-regular workers could undermine internal control systems designed to prevent financial misconduct, as well as the quality of customer service.
"As the banking sector accelerates digital innovation and management efficiency, we are seeing a structural change in employment, with permanent positions falling sharply and the share of non-regular workers rising," Park said. "Financial authorities must closely examine how this shift in workforce structure affects job stability in financial markets, as well as internal control monitoring systems and services for financial consumers."
Average pay per employee at the five banks stood at 117.91 million won last year, up 3.01 million won, or 2.6%, from 114.90 million won a year earlier.