Major banks lead domestic salary rankings

In the first half of this year, employees at South Korea’s four major commercial banks earned an average of 63.5 million won, a record high that surpasses domestic giants such as Samsung Electronics and Hyundai Motor. For the first time on a half-year basis, average pay at the four major financial holding companies exceeded 100 million won.

According to the Financial Supervisory Service on Aug. 17, the average salary per employee at KB Kookmin, Shinhan, Hana, and Woori banks was 63.5 million won in the first half of the year, up from 60.5 million won in the same period last year. Among the banks, Hana Bank recorded the highest average at 68 million won, while the other three banks each reported 62 million won. If this trend continues, the average annual salary for employees at the four banks is expected to exceed 120 million won.

The average salaries at the four major banks surpassed those of leading domestic companies. Employees at Samsung Electronics earned 60 million won, LG Electronics 59 million won, Kakao 58 million won, and Hyundai Motor 45 million won, all below the bank averages.

For the first time, the average salary at South Korea’s four major financial holding companies exceeded 100 million won. KB Financial led with 112 million won in the first half, followed by Woori Financial at 105 million won, Hana Financial at 95 million won, and Shinhan Financial at 92 million won.

The rise in pay for employees at the major banks and holding companies is attributed to continued record-breaking performance. Net income for the four major financial holding companies in the first half reached 10.3254 trillion won, surpassing 10 trillion won for the first time and marking a record high for a half-year period. Banks maintained stable interest income even amid a rate-cutting trend by lowering deposit rates while raising loan rates.

Government pressure on the financial sector for shared growth is expected to intensify. Earlier, President Lee Jae-myung criticized financial institutions, saying, “Banks should not focus solely on easy mortgage loans and interest gains but also pay attention to expanding investments.” The government has urged banks to contribute resources to troubled lenders and called on them to play a role in advanced industry funds.

Meanwhile, in the insurance sector for the first half of the year, former Hyundai Marine & Fire CEO Cho Yong-il received the highest compensation, including retirement pay, totaling more than 7.3 billion won. In the credit card industry, Hyundai Card Vice Chairman Chung Tae-young earned 2.694 billion won, ranking first.


Joo-Young Jeon aimhigh@donga.com