The five largest banks – Kookmin, Shinhan, Hana, Woori, and Nonghyup – have agreed to raise base salaries by 2.8 percent, up from 2 percent in 2024, according to banking industry sources on Monday.
Shinhan and Hana banks have allocated performance bonuses equivalent to 280 percent of base salary, while also increasing cash-equivalent benefits. Hana Bank doubled its cash payment to 2 million won (US$1,360) and is to hand out additional welfare points worth 500,000 won.
These generous compensation packages come amid public criticism over banks profiting from high interest rates while domestic consumption remains sluggish and households struggle with mounting debt burdens. The current political climate has also fueled public discontent.
The banks' cumulative net profit for the first three quarters of 2024 reached 11.78 trillion won, marking a 4.06 percent increase from the same period last year, according to the Financial Supervisory Service.
This surge in profits is largely attributed to widening interest margins. The spread between lending and deposit rates reached 1.41 percentage points in November 2024, the highest in 15 months according to the Bank of Korea.
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