Hana Bank joins other Korean lenders to seek voluntary early retirement

[Photo by Lee Seung-hwan]

Hana Bank is seeking applicants to take up its voluntary early retirement program, joining other commercial lenders in Korea to streamline their workforce.

Hanna Bank began taking applications from its employees on Tuesday. Eligible employees are those who worked for the bank for 15 years or longer as of Dec. 31, 2022 and are 40 years old or older. The bank is offering severance pay of up to 36 months of monthly wage, plus support on child education, medical care and other benefits depending on employment contract.

It plans to wrap up the early retirement program by the end of this month.

Hana Bank is the latest among the major banks in Korea seeking voluntary early retirement program.

Industry experts say as many as 3,000 bank employees are expected to leave by the end of this month as banks lowered age limit to include those in their early 40s. A year earlier, a total of 1,817 bank employees from the country’s top 4 banks - KB Kookmin, Hana, Shinhan, and Woori ? left through voluntary early retirement programs.

This year, Shinhan Bank began taking application for early retirement on Jan. 2. Woori Bank and NH Nonhyup Bank, another major bank, started earlier in December. KB Kookmin Bank started the program on Dec. 28.

They all cut the age limit to include employees as young as 40 years old.