KB Kookmin Bank said Wednesday it would carry out a full-fledged early retirement program in the coming weeks, similar to the one late 2010 when about 3,200 workers left the commercial bank via a voluntary redundancy program.

The labor union and management of KB Kookmin recently agreed on the early retirement scheme, which is aimed at scaling back its payroll by about 5,500, according to the bank.

The trageted employees will include 4,500 ordinary workers and 1,000 senior members ― including executives ― who will be subject to the wage peak system. The bank will start accepting applications from Monday.


“The terms for the 2015 voluntary redundancy program are believed to be similar to those five years ago,” a spokesman said. “Up to 36 months will be paid.”

Apart from the ordinary salaries for the coming period ranging from 27 to 36 months, each outgoing staff member will be paid a 24 million won ($21,800) severance.

“The early retirement program is inevitable to overcome the bank’s irregular manpower structure. It is also targeted at increasing the opportunity for young job seekers,” the bank said in a statement.

Meanwhile, KB Kookmin promised it would rehire a certain portion of the outgoing staff as nonregular workers.

Since the bank conducted a restructuring in November 2010 that led to 3,244 layoffs from its approximately 26,000 employees, its moves to increase productivity have continued.

Its management has continued to stress that productivity has been lowered due to widespread inefficiency in the overall sector.

Some executives earlier said the bank was reaching a critical situation under which it cannot provide confidence to foreign investors about its future.

By Kim Yon-se (kys@heraldcorp.com)