Korea’s financial watchdog average pay lower than those in financial industry

Financial Supervisory Service [Photo by Han Joo-hyung]

Paychecks for employees at the Financial Supervisory Service (FSS), the South Korean financial regulator, stand only in the middle of the salary spectrum for the overall domestic financial industry, leading to discouraged employees and further losses of human resources.

According to the regulators’ own management information disclosed on Monday, the average annual salary for a full-time FSS employee was about 110.06 million won ($82,130) last year. This year’s estimated average annual salary at the regulator is likely to remain in a similar range, as it has calculated an average annual salary for its employees at 103.28 million won, with the assignment of 5.5 million won to 6 million won as performance-based bonuses.

Though the FSS average annual salary may be higher than the national corporate averages, the figure stands only in the middle of the salary spectrum at financial institutions, the very entities that face regulation and supervision by the FSS.

“Despite the fact that the FSS is not a public organization, its wage policy is based on that of public organizations, in effect limiting its employee payment, together with budget cuts over the past five years,” said an unnamed official from a financial authority.

The average annual salary at banks last year was higher than that at the FSS. Looking just at banks, KEB Hana Bank’s average annual salary stood at 114.59 million won last year and KB Kookmin Bank at 113.69 million won. Internet bank Toss Bank’s average annual salary was 119 million won and KakaoBank Corp. was at 146 million won.

Some of the non-banking sector paid their employees with even higher annual salaries last year. At credit card companies, the average annual salary at Samsung Card Co. was 139 million won last year, followed by Shinhan Card Co. and KB Kookmin Card Co. at 127 million won, Hyundai Card Co. at 120 million won and HanaCard Co. at 113 million won. The Korean Reinsurance Co. paid its employees on average 157 million.

As for insurance companies, Samsung Fire & Marine Insurance Co. employees were paid an average 136 million last year, Shinhan Life Insurance Co. 124 million won, Meritz Fire & Marine Insurance Co. 120 million won and Hyundai Marine & Fire Insurance Co. 111 million won.

Yeouido financial district [Photo by MK DB]

The average annual salary at the 18 securities firms stood at 145.38 million won last year, with Meritz Securities Co. paying its employees an average of 230 million won per year.

Among savings banks, which tend to have some of the lowest salaries in the financial industry, Sangsangin Plus Savings Bank Co. paid its employees an average of 98 million won last year, followed by Pepper Savings Bank at 88 million won and SBI Savings Bank 85 million won.

The FSS used to be considered one of the highest-paying employers, paying more generously than some of the largest Korean corporations, like Hyundai Motor Co. or Samsung Electronics Co. Its average annual salary in 2012 stood at 91.96 million won.

However, after topping 105.38 million won for regular FSS employees, the average annual salary fell to 105.17 million won in 2019. In the following years of 2020 and 2021 the figure was back on an upward trend, posting 106.57 million won and 106.73, respectively, but with a relatively small increase of 4.68 million won over the past five years.

While pecuniary advantages have been comparatively worsening, FSS employees have also seen higher work pressure, resulting in 30 employees leaving last year, jumping to jobs at banks and insurance companies, or to the virtual asset industry. The FSS is now running an open, ad hoc recruitment program to attract experienced workers to add to its workforce.

Meanwhile, the FSS governor received 363 million won in income last year, including some 130 million won as a performance bonus. That salary stood at the lower end of the salary spectrum for top executives at overall financial institutions.

The annual salary for the head of the regulator over the past five years, excluding 2022, was 311.04 million won in 2018, 345.63 million won in 2019, 344.02 million won in 2020 and 353.96 million won in 2021.

The heads of major financial groups, in contrast, earned as much as 1.8 billion won or as little as 900 million won last year. As for securities firms, Mirae Asset Securities Co. Chief Executive Officer Choi Hyun-man received 5.1 billion won last year, while Meritz Securities CEO Choi Hi-moon and President Kim Ki-hyung received about 3.72 billion won and 3.62 billion won, respectively.