While overall employment in the finance and insurance sectors has increased, the number of new hires at major commercial banks has been declining over the long term. The rise of online transactions and the reduction of physical branches have led to a decreased demand for general bank tellers, prompting a shift in recruitment within the finance sector towards specialized roles in digital IT, investment finance, and non-bank institutions.
According to the Financial Services Commission, the '2026 Joint Recruitment Fair for the Finance Sector' is taking place at the Dongdaemun Design Plaza in Seoul over two days, featuring a record 82 financial institutions. The number of participating organizations has steadily increased from 64 in 2023 to 78 in 2024, and 80 last year.
Despite the growth of the job fair, new hiring at major commercial banks is generally on the decline. According to the finance sector, the four largest banks—KB Kookmin, Shinhan, Hana, and Woori—plan to hire approximately 510 new employees in the first half of this year, a decrease of 85 positions, or 14.3%, from about 595 in the same period last year.
Hiring trends vary by bank. Some banks have increased their hiring numbers compared to last year, but the reductions at other banks have been more significant, leading to an overall decrease among the four major banks. The total number of annual new hires has also dropped from 1,880 in 2023 to 1,320 in 2024, and approximately 1,170 last year, marking a 37.8% decline over two years.
The reduction in bank hiring is attributed to changes in the operating environment. The expansion of mobile banking and the consolidation of branches have decreased the demand for general tellers. Banks are now focusing on hiring specialized personnel in areas such as digital IT, data, and corporate finance on an as-needed basis, rather than relying on large-scale regular recruitment.
In contrast, overall employment in the finance sector has increased. According to the National Data Agency's Economic Activity Population Survey, the number of employed individuals in finance and insurance reached 825,900 in the second quarter of this year, up by 56,300, or 7.3%, from 769,600 in the second quarter of 2021.
However, this statistic includes not only bank employees but also those working in insurance companies and finance-related services, as well as non-wage workers. Therefore, the increase in finance and insurance employment cannot be directly interpreted as a growth in bank jobs. There is also a trend in non-bank sectors to hire experienced workers who can be deployed immediately rather than increasing large-scale new graduate recruitment. The re-employment of voluntary retirees in the banking sector is also reflected in the overall employment figures.
Ultimately, even as overall employment in finance and insurance rises, the number of entry-level positions available for young people may be decreasing. Lee Ok-yeon, chairman of the Financial Services Commission, commented, “With the introduction of AI and rapidly changing job requirements, companies are increasingly favoring experienced candidates, making it more challenging for young people to enter the finance sector.”
* This article has been translated by AI.
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