The average salary per head at Korea's four major commercial banks topped W60 million for the first time in the first six months of this year, even as the economy is in a slump ($1 = W1,337).
Workers who accepted the voluntary retirement packages received between W800 million and W900 million in severance pay and other compensation.
Banks KB Kookmin, Shinhan, Hana and Woori paid their employees hefty bonuses and severance pay after reaping huge profits as interest rates rose. According to their half-yearly reports on Thursday, average wages per head were W61.5 million, up 4.7 percent from a year ago and up 22 percent from three years ago.
Most banks give bonuses in the first half, so the annual salary is not twice as much, but since bonuses are usually 1.5 times the monthly salary, the average annual salary in large commercial banks is expected to exceed W100 million again this year. It crossed the milestone in 2021 for the first time .
Banks made record profits last year thanks to a sharp rise in interest rates. The total net profit of the four and NH Nonghyup rose 46 percent from 2020 to W12.69 trillion last year. Non-interest income, such as commissions, actually fell by around W1 trillion, but interest income rose around W10 billion. W.
In December 2022 and January this year, 2,220 employees of the five major banks applied for voluntary retirement, each receiving between W500 million and W600 million in severance pay. One industry source said: "It appeared that more workers wanted to take advantage of this opportunity to leave."
The top five earners among bank employees were those who opted for voluntary retirement and received severance payments of between W800 million and W900 million.
One Hana Bank employee who took voluntary retirement received W1.13 billion, while the average severance pay across the five banks was W540 million. The money means even workers in their 30s now want voluntary retirement.
Criticism centered on the fact that the banks grew in Korea's protected market, which strictly barred new entrants, and were bailed out with taxpayers' money during the 1997 Asian financial crisis and the 2008 global financial crisis.
A 37-year-old employee at the start-up said: "I respect and envy salaried workers who get huge bonuses for developing innovative services or playing a major role in sales promotion. But when I hear about retiring bankers getting paid more, I start to desperate." than WIN 1 billion as severance pay after working in a protected industry.”
The tax authorities have been telling the banks to stop paying out so much money, but there is no law to stop it. One financial regulatory source said: "There is nothing we can do to stop this practice other than getting banks to report their spending, but we are looking at ways to address public concerns."
the emphasis is on the stark contrast between the rising incomes of bankers and the problems faced by most Koreans. The use of keywords such as "bankers' salaries are rising", "Most Koreans are struggling" and "Inequality" are intended to attract the reader's attention and convey the central theme of the article. This headline is designed to improve search engine visibility while accurately representing the main message of the content.
In a stark tale of disparate fortunes, banker salaries are reaching new highs while a significant portion of the Korean population faces economic hardship. This article delves into the widening gap between bankers' earnings and the problems facing most Koreans, shedding light on the implications of this trend and its wider societal implications.
Bankers' pay rise: Surprising growth revealed
Discover the remarkable increase in bankers' salaries, driven by various factors.
Analyze the reasons for this upward trajectory, including market trends, labor demand, and financial incentives.
Economic challenges facing most Koreans:
Highlight the economic hardships facing most Koreans, including rising living costs, unemployment concerns and stagnant incomes.
Discuss the impact of these challenges on the overall quality of life and financial well-being of the average citizen.
Income disparity amplified:
Explore the alarming contrast between the wealthy lifestyles of bankers and the financial struggles of the average Korean.
Present statistical data showing the extent of income inequality and its acceleration in recent years.
Social implications:
Explore the potential social consequences of this widening income gap, such as increased social tension, resentment, and a sense of injustice.
Discuss the potential effects on mental health and social cohesion, both at individual and collective levels.
Principles:
Delve into measures policymakers can take to address this growing disparity, including potential reforms to taxes, labor regulations, and welfare programs.
Evaluate the effectiveness of existing policies and propose innovative solutions to overcome income disparities.
Social responsibility and accountability:
Analyze the role of financial institutions in reducing income inequality and emphasize the importance of responsible business practices and ethical considerations.
Show examples of banks or financial entities that have taken steps to ensure fair remuneration and have made a positive contribution to society.
As bankers' salaries continue to rise, a striking story of inequality is emerging against the backdrop of Koreans struggling financially. The growing gap between these two realities requires urgent attention from all stakeholders – policy makers, corporations and society at large. By addressing the income gap, promoting economic inclusiveness, and redefining the priorities of the financial sector, Korea can move closer to a fairer and more harmonious future.
In a stark story of the financial abyss, banker salaries have reached unprecedented highs while a significant portion of the Korean population faces economic hardship. Delving into the soaring incomes of bankers and the contrasting struggles of most Koreans, this article sheds light on the troubling income inequality that has become central to the nation's economic landscape.
Banker salaries reach new heights:
The banking sector has witnessed a staggering increase in salaries that has driven bankers into a realm of affluence that is in stark contrast to the financial reality of the average citizen. As financial institutions post record profits, executives and top-level employees in the banking industry are enjoying significant increases in pay and bonuses, further highlighting the gap between the haves and have-nots.
Income disparity amplified:
While bankers revel in their newfound prosperity, most Koreans face an uphill battle to make ends meet. Rising living costs, job insecurity, and a lack of comprehensive social safety nets have contributed to widespread struggle among the population. This widening income gap not only threatens social cohesion, but also poses significant challenges to the country's long-term economic stability.
Impact on the national economy:
Rising income inequality has far-reaching implications for the Korean economy. With a substantial portion of the population facing financial difficulties, consumer spending, a vital engine of economic growth, is likely to decline. This in turn could lead to reduced demand for goods and services, hindering overall economic progress. Additionally, the uneven distribution of wealth raises concerns about social unrest and political tension, potentially destabilizing the country's economic and political landscape.
Resolving imbalances:
Efforts to reduce income disparity have gained momentum as policymakers and advocacy groups push for fair wage structures, better job protections and welfare programs. By addressing the root causes of income inequality and promoting inclusive economic policies, Korea can work to promote a more balanced and sustainable economic future.
Comparing the rising salaries of bankers to the struggles of most Koreans paints a disturbing picture of the country's income inequality. As financial institutions flourish, a significant portion of the population faces financial problems that hinder both personal well-being and broader economic growth. The way forward requires a concerted effort to bridge this gap, ensuring a more equitable sharing of prosperity and the prosperity of the Korean economy based on inclusiveness and equity.
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