Due to Generous Compensation for Retirement
Citibank Korea, which is planning to withdraw from the South Korean retail banking market, has received voluntary retirement applications until Nov. 10. The bank predicted that it would receive 1,500 applications, but more than 2,300 employees submitted their applications. For reference, 3,250 people are currently working for the bank, including 2,400 in its retail banking arm.
Such a large number of applications has to do with the generous compensation the bank promised in September last year. Specifically, each employee with a remaining period of more than five years until the retirement age will be given 90 percent of his or her monthly pay multiplied by the remaining period and the ratio for the other employees is 100 percent. The upper limit for each is 700 million won.
In addition, 10 million won will be given to the son or daughter of an employee who is a college student and the upper limit of this scholarship is 20 million won per employee. The bank will provide comprehensive medical checkup for each employee and his or her spouse for three years after the retirement. Also, a two million won department store voucher will be given and the bank said that it would help its staff find a new job.
“The Financial Services Commission recently said that the withdrawal can be carried out even without its approval,” said an industry source, adding, “This announcement also led to such a large number of applications.”