Trying Times
The restructuring of the securities industry is showing no signs of easing in the second half. Over 1,000 employees in the industry left the sector in the first half of this year, and manpower and branch reductions are expected to be ongoing during the rest of 2014.
Samsung Securities, Daishin Securities, Woori Investment & Securities, and Hana Daetoo Securities have had a large number of their employees retire by June. More than 300 left the industry from Samsung Securities, and the number reached 140 in Hana Daetoo Securities, which is equivalent to 8 percent of the entire staff. The number amounted to 300 and 196 in Woori Investment & Securities and NH Investment & Securities, respectively. Daishin Securities had its first voluntary resignation last month, to let go of 300 workers. Additional layoffs are anticipated in the second half, too.
Branch shutdown and consolidation are expected to accelerate as well. According to the Korea Financial Investment Association, the number of employees in the securities sector fell from 44,055 to 40,243 between the end of 2011 and the end of 2013, and further declined to 39,146 this year. The number of branches decreased from 1,856 to 1,527 between 2011 and this year, as well.
“The possibility of restructuring has been raised in all of the securities companies in Korea,” said an industry source, adding, “They are also working on channels to take the place of offline branches, which means branch reduction will pick up speed down the road.”