[Yonhap]
[Yonhap]

Average compensation at South Korea's five major commercial banks rose broadly last year, but the results were uneven: Woori Bank posted the sharpest gain while Shinhan Bank was the only lender to record a decline.

Woori Bank's average labor income per employee climbed more than 6 percent, driven by performance bonuses tied to its 2024 management targets, a base wage increase, and an expansion of ordinary wages. The gains lifted the bank's pay ranking from last place among the five lenders the previous year to third.

According to the Korea Federation of Banks' management disclosure report released Sunday, the average labor income per general employee across KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH NongHyup Bank came to 117.91 million won ($76,400) last year, up 2.6 percent — or 3.01 million won — from 114.9 million won the year before.

Woori Bank recorded the largest increase among the five. Its average labor income per employee reached 118.23 million won last year, a 6.2 percent rise of 6.94 million won from the prior year. The bank had ranked last among the five with 111.29 million won in 2024, but within a year climbed to third place, trailing only Hana Bank at 119.84 million won and KB Kookmin Bank at 119.63 million won.

The expansion of performance bonuses was the primary driver. Reflecting its 2024 earnings, Woori Bank paid employees a management performance bonus equivalent to 233.5 percent of their monthly base salary last year. Total bonus payments amounted to 138.5 billion won, averaging 9.76 million won per employee. The bank's consolidated net profit for the period in 2024 was 3.04 trillion won, ranking fourth among the five major banks, but the figure represented a record high by the bank's own internal measure.

Average bonuses per employee, including the management performance bonus, rose 12.6 percent — or 4.24 million won — to 37.97 million won. Woori Bank said the overall increase in average labor income also reflected a 3.1 percent base wage hike, higher allowances stemming from the expansion of ordinary wages, and shifts in headcount resulting from voluntary retirement programs.

Other banks also saw compensation rise as performance rewards were factored in. Hana Bank posted the highest average labor income among the five at 119.84 million won per employee, up 2.8 percent, or 3.3 million won, from the previous year. The increase reflected a 3.1 percent wage hike agreed through labor-management negotiations, management performance bonuses, and irregular bonus payments.

KB Kookmin Bank's average labor income per employee rose 2.9 percent to 119.63 million won, boosted by wage increases and profit-sharing payments reflecting its 2024 results. NH NongHyup Bank also saw average labor income climb 1.87 percent, or 2.14 million won, to 116.92 million won, supported by headcount changes, a 3.1 percent wage increase, and a special bonus agreed through labor-management consultations.

Shinhan Bank, by contrast, saw average labor income per employee dip 0.6 percent to 114.96 million won, as a reduction in headcount from voluntary retirements weighed on the figure. Its management performance bonus per employee also fell 11.2 percent — or 1.27 million won — to 10.06 million won, pushing the bank's pay ranking down from third to fifth.

Industry analysts note that average employee compensation is shaped by a range of factors beyond earnings and bonus size, including voluntary retirement programs, changes in wage structures, and shifts in workforce composition. Compensation gaps among the banks could widen further depending on each lender's business performance, shareholder return policies, and workforce management strategies, analysts say.


rainbow@heraldcorp.com