What’s driving the high turnover in South Korean banks?

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High Turnover in South Korean Banks Driven by Corporate Culture and Work-Life Balance Demands

South Korean banks are experiencing a substantial exodus of young employees, primarily driven by a demanding corporate culture that includes long working hours and intense pressure. This trend is reflected in a significant increase in turnover rates for workers under 30, indicating a shift in priorities among new entrants to the job market who now value well-being and freedom over traditional career paths, even those offering high compensation.
Young Recruits Resigning in Large Numbers

Leading financial institutions in South Korea, including Kakao Bank, Shinhan Bank, and Hana Financial Group, have seen a notable departure of recruits aged under 30 in 2023. This surge in resignations has led to an average turnover rate of 4.77% for this demographic in 2023. This figure represents an eightfold increase compared to the 0.57% turnover rate recorded in 2020, highlighting a dramatic change in employee retention within the sector.
Corporate Culture and "Overwork" Prevalent

A significant factor contributing to these departures is the deeply ingrained corporate culture within the South Korean banking sector, often characterized by an "overwork" ethos. Young employees frequently report feeling pressured to make personal sacrifices, forgo vacation days, and work through weekends as a perceived necessity for career advancement. This environment, where long hours and intense dedication are expected, is proving increasingly unappealing to the younger generation.
Material Compensation No Longer Sufficient Incentive

Despite offering attractive financial packages, with average annual salaries exceeding 100 million won and additional bonuses, the banking industry is finding that material compensation alone is insufficient to retain young talent. New job seekers entering the market are placing a higher premium on working conditions, prioritizing their physical and mental well-being, and seeking greater personal freedom, which they find lacking in the highly disciplined and demanding banking environment.
Shift Towards Financial Technology Startups

In response to these workplace conditions, young South Koreans are increasingly seeking opportunities in the financial technology (fintech) sector. This preference for startups offers a contrast to the traditional banking model, suggesting a broader trend where younger workers are prioritizing work-life balance and a more flexible work environment over the established prestige and financial rewards of conventional finance roles.

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What’s driving the high turnover in South Korean banks?

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