Top 5 banks shed over 4,000 full-time staff while adding 1,000-plus contract workers in 3 years

South Korea's five major banks shed more than 4,000 full-time employees over the past three-plus years while adding over 1,000 contract workers, data show. Observers say financial regulators need to examine how the shifting employment structure affects internal controls and consumer services as the sector presses ahead with digital transformation and workforce streamlining.

Data submitted to People Power Party lawmaker Park Sung-hoon of the National Assembly's Political Affairs Committee by the Financial Supervisory Service show the combined full-time headcount at KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH NongHyup Bank fell by 4,080 between end-2022 and late July this year. Over the same period, the number of contract workers rose by 1,048, but total combined staff still declined by 3,032.

Among the five lenders, KB Kookmin Bank recorded the steepest drop in full-time employees. Its full-time headcount fell from 14,990 at end-2022 to 12,614 in late July this year, a decline of 2,376 — accounting for 58.2 percent of the five banks' combined full-time reduction. Contract workers rose from 2,136 to 2,566, an increase of 430. Total staff fell by 1,946, from 17,126 to 15,180.

At Woori Bank, full-time employees declined by 519, from 12,855 to 12,336, while contract workers rose from 690 to 1,194, an increase of 504. The net reduction in total headcount was just 15.

Hana Bank saw full-time staff fall by 389, but contract workers rose by 661 — the largest increase among the five banks. Its total headcount grew by 272, making it the only one of the five to post an overall staff increase.

Shinhan Bank cut both full-time and contract employees, by 796 and 421 respectively, for a total headcount reduction of 1,217. NH NongHyup Bank saw no change in full-time staff and a decrease of 126 contract workers.

Park attributed the changes to a combination of factors, including digital transformation, the expansion of non-face-to-face financial services, and workforce streamlining through voluntary and early retirement programs.

"As banks have accelerated digital innovation and management efficiency, we are seeing a structural shift in employment — a sharp decline in full-time staff and a growing share of contract workers," Park said. "Financial authorities must closely examine how these changes are affecting employment stability, internal controls and financial consumer services."

Park also noted that the number of long-dormant and unclaimed financial accounts in the banking sector stood at about 341.91 million at end of last year, up 29.3 percent from end-2021. The total balance of long-dormant and unclaimed financial assets over the same period reached 14.19 trillion won ($10.6 billion).