SEOUL, July 18 — Attracted by social prestige and the lure of money, new graduates have long envisioned themselves working in finance. But in South Korea, young people no longer dream of a career in this sector, where long working hours and high pressure remain the norm.
South Korea’s leading banking groups are bearing the brunt of young people’s growing disinterest in finance-related careers. In 2023, Kakao Bank, Shinhan Bank and Hana Financial Group were faced with the departure of a large number of their young recruits. That year, the turnover rate for employees under the age of 30 averaged 4.77 per cent, according to the Korea Times. This figure is eight times higher than the 0.57 per cent recorded in 2020.
There are many reasons for these resignations, but most of them have to do with the corporate culture of the banking sector. In South Korea, as elsewhere, financial professions are notoriously demanding. The culture of “overwork” is omnipresent.
At the start of their careers, young recruits don’t count the hours to show their total devotion to the company and win the good graces of their superiors. The idea that you have to make sacrifices to get to the top of the hierarchy becomes ingrained in them. Not taking days off or working weekends are seen as a necessary evil to advance your career.
These sacrifices are, of course, offset by high salaries. Employees of South Korea’s five biggest banks earn, on average, more than 100 million won (around RM338,000) a year, according to the Korea Times. And that’s not counting bonuses and other incentives.
But this material comfort zone is no longer enough to convince young people in South Korea to stay in banking. New entrants to the job market have their own demands, not least in terms of their working conditions.
They refuse to let their physical and mental well-being suffer as a result of their working life, and aspire to greater freedom. But in banking, it’s all about discipline.
“It is no different than the culture in the military. If an order is given, you have to follow without asking questions. Most do what they are asked without making a fuss,” a professional from the sector, who wished to remain anonymous, told the Korea Times.
Young people in South Korea are deserting the world of banking in favour of financial technology startups, or fintechs. For example, 90 per cent of staff at the online payment application KakaoPay belong to generations Y and Z. To appeal to young people, the banking sector will have to reinvent itself. Its very survival may depend on it. — ETX Studio
