[THE INVESTOR] More than 600 employees of KB Kookmin Bank have applied for early retirement, according to industry sources on Jan. 16.
The employees, who account for 29 percent of the eligible workers, decided to accept the voluntary retirement scheme which offers various incentives. The number of eligible employees this year was 2,100, up from 1,800 in 2018.
The bank is offering three months extra severance pay, in addition to 36 months, for this year’s applicants, while they can also avail of tuition fee subsidy for their offspring or their own retraining expenses.
The firm is expected to shell out around 400 million won (US$3.57 million) to each employee as retirement payouts, including various incentives. It spent a total of 155 billion won last year, handing out 380 million won for every employee who opted for voluntary retirement.
Meanwhile, the bank’s labor union said it would continue its strike from Jan. 30 to Feb.1, shortly before the Lunar New Year holiday. The management and labor union are still negotiating the wage-peak system, involving a gradual reduction in salary for senior employees, and the pay-band system that blocks the salary of employees who fail to get promoted within a designated period of time.
By Yoon Yeun-jung (firstname.lastname@example.org)