ajunews Monday,4 December 2023

​S. Korea's banking sector embroiled in controversy for inflating recruiting capacity

By Kim Joo-heon Posted : March 7, 2023, 16:01 Updated : March 7, 2023, 16:57

[Courtesy of the Financial Services Commission]

[Economic Daily is the brother company of Aju Daily.]

SEOUL -- According to an exclusive report by Economic Daily, South Korea's banking industry inflated its recruiting capacity while carrying out the government's order to hire more employees. Unlike the original plan to recruit 2,288 new employees, the actual number turned out to be only 953.
The country's finance industry has earlier announced its massive recruitment plan, followed by President Yoon Suk-yeol's order in February 2023 to come up with a measure for people suffering due to banks' high-interest rates. Yoon pointed out that the banking sector, which has benefited from high-interest rates, is spending an enormous amount of funds on employees' merit pay and dividends for shareholders.
After the president's order, the Korea Federation of Banks unveiled its scheme to recruit a total of 2,288 employees. However, Economic Daily revealed that the actual number of employees to be hired is only 953, which accounts for about 42 percent of the original plan.
The federation said on February 20 that NH Nonghyup Bank would hire 500 people in February and May this year through an official document. However, it turned out Nonghyup had already selected 480 new employees since December 2022. Instead of providing opportunities to young people, the remaining 20 would be filled with applicants with related job experience.
The 85 people who were already selected by Suhyup Bank in January 2023 were included in the recruitment plan for the first half of 2023. The South Korean media company also criticized that many other banks reported their plan without specifying the portion of new workers and experienced employees.  
Other companies including stock firms have similar problems as the finance sector was trying to appease the public without coming up with a proper plan. The finance industry which includes life insurance, property insurance, and investment, said it would recruit 4,719 new workers, but the actual number turned out to be only 2,654. Without disclosing specific information, Economic Daily analyzed that multiple finance association officials received an official document from the Financial Services Commission, a state financial regulator.

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