Shinhan·KB also added 1.5 million won for encouragement and consolation… More than last year
“Political pressure and social criticism if wages are raised because the situation is better”
Banking Team = It is difficult for many companies to expect an increase in incentives or wages due to’the economic cold’ caused by Corona 19, but the banks are having a relatively warm winter with ‘200% incentives’.
This is a representative example of the “corona paradox” because the loan volume itself has increased significantly due to demand such as “young pull (to attract the soul)” and “debt investment (invest by loan)”, and the profits of the banking sector increased significantly from 2019. .
Some argue that the government’s anti-compulsory profit-sharing movement is also controversial, but it is also pointed out that the financial sector does not look at the surroundings by itself and is devoted to internal distribution and gives a’blow me’.
◇ Enhancement of welfare benefits such as joint rental system… Increased retirement allowance
According to the financial sector on the 24th, the labor and management of Shinhan Bank, NH Nonghyup Bank, Woori Bank, and KB Kookmin Bank concluded wage and collective agreements in turn from the end of last year until the 19th.
It means that most of the five major commercial banks except Hana Bank have concluded negotiations.
As for the wage increase rate, all four banks’ labor and management accepted 1.8%, which was previously agreed between the financial union and the financial industry employers’ council.
It is also common to donate half (0.9%) of 1.8% to public interest foundations.
Although banks have different names such as’borough money’, incentive pay is 180-200% of normal wages including basic pay, which is slightly less or similar to the previous year.
Kookmin Bank and Nonghyup Bank give 200% of the same as a year ago, and Shinhan Bank gives 180% of incentives, down 10 percentage points (p).
For example, as the monthly base salary of the vice-branch manager is about 7 million won, they can expect a neck money of about 14 million won.
In the case of Shinhan Bank, 30% of 180% will be paid in the form of stocks in March.
In the case of the labor and management of Woori Bank, which concluded a collective bargaining agreement on the 13th, the level of special bonuses was decided after the net profit was finalized last year, and whether or not to pay.
Although the rate of wage increase was 0.2 percentage points lower than the previous year (2%) and the rate of incentives in some banks fell slightly, the pockets of bank employees were rather thickened when considering the incentives and condolences paid separately from incentives, and new welfare benefits. There is also an analysis.
In the case of Shinhan Bank, 1.5 million won was paid in cash at the end of last year in the name of’special condolence money’, but it is estimated that a large number of good salaries offset the decrease caused by the decrease in the incentive rate (10%p).
This is because if the monthly basic wage is 7 million won, even if the incentive pay is 700,000 won (10%), 1.5 million won, which was not in the previous year, was added.
In the case of Kookmin Bank, in addition to incentives, it was decided to pay 1.5 million won of encouragement. As a result, it is known that the’bonus’ type of cash increased by 500,000 won from the previous year.
Many new welfare and benefits systems have also been introduced.
The labor and management of Nonghyup Bank agreed to expand the allowance for special work places and improve domestic travel expenses.
The union of KB Kookmin Bank has implemented a one-on-one customized health care program for employees, increased the number of divided parental leave, new half-and-half leave, and introduced a joint rental system in which the company pays half of the deposit.
The conditions for hopeful retirement this year have also improved remarkably.
In the case of Hana Bank, the special retirement allowance increased from the average wage of the maximum 27 months of the previous year to 36 months (the manager’s salary is 27 to 33 months), and the special retirement allowance of Nonghyup Bank also increased from 20 months to 28 months in one year.
An official from a commercial bank explained, “The incentive level is similar to that of the previous year, and the part where some encouragement money has increased is a consolation for employees who have suffered without working from home at the counter, taking risks even in the corona 19 crisis.”
◇ Five major financial holdings amid the economic cold, it seems that last year’s’biggest’ profits were made
As such, the overall wage situation in the banking sector has improved because profits in the financial sector such as banks have increased, which is rare for domestic sectors excluding export sectors.
Looking at the cumulative results until the third quarter of last year, KB Financial Group (2.87 trillion won) increased 3.5% from the same period in 2019, and Shinhan Financial Group (2,950.2 billion won) also increased 1.9%.
All of these are all-time highs.
The cumulative net income of Hana Financial Holdings (2.16 trillion won) and Nonghyup Financial Holdings (1.46 trillion won) also increased 3.2% and 4.8% from the same period last year. It is expected to make the most profit this year.
In a recent report, Korea Investment & Securities estimated that the banking sector’s annual net profit reached 15 trillion won, 7% more than in 2019.
The reason why the financial industry grew even in the midst of the economic downturn was, first of all, due to the fact that loans from households and companies increased significantly last year due to the overlapping demand for funds caused by life and business difficulties and demand for investment in real estate and stocks.
In fact, when looking at the overall KRW loan growth rate (compared to the end of last year) of each bank until the third quarter of last year, NH Nonghyup Bank was the highest at 9.9% (211 trillion → 232 trillion won), and KB Kookmin Bank was 8.7% (269 trillion → 292 trillion won). Followed.
Shinhan Bank and Hana Bank’s loans increased by 7.7% (225 trillion → 242 trillion won) and 7.4% (218 trillion → 234 trillion won), respectively, and Woori Bank increased 6.8% (220 trillion → 235 trillion won).
Accordingly, the cumulative net interest income for the third quarter of each financial group ▲ KB Finance KRW 7.14 trillion (4%↑ from the same period last year) ▲ Shinhan Finance KRW 6.45 trillion (2%↑) ▲ Nonghyup Finance KRW 5,960 trillion ( 1.1%↑) ▲ Woori Finance was up to 4,428 billion won (0.2%↑) from last year.
Hana Financial Group (4.33 trillion won) decreased by 0.3%, but the decline was insignificant.
In addition, the craze for stock investment by individual investors, known as the’Donghak Ant Movement’, drove various commissions such as stock commissions to financial group affiliated securities companies.
Accumulated commission income for the third quarter of affiliated securities companies of each financial group ▲ KB Securities 688.1 billion won (59.5%↑ compared to the same period last year) ▲ Shinhan Financial Investment 536.9 billion won (43.8%↑) ▲ Hana Financial Investment 395.2 billion won (37.8 billion won) %↑) ▲ NH Investment & Securities was KRW 731.5 billion (63%↑), a 40-60% increase in the year.
This is why passports point to the financial sector as the target of the’profit sharing system’.
Seong Tae-yoon, professor of economics at Yonsei University, said, “I don’t think it is appropriate to support the corona victims by forcibly donating money from the financial sector,” he said. “In many ways, most members of society are in a difficult situation. He advised, “If you try to increase compensation and welfare by force, you should be aware that it gives you an excuse to expose yourself to social criticism or political pressure.”
/yunhap news