Banks cut new hiring on worsening profitability

Korean banks are not only reducing their workforce but cutting new hiring largely due to worsening profitability stemming from a falling profit margin, industry sources said Wednesday.

Shinhan Bank hired 200 new employees in the first half of this year, about a half of the hirings made during the same period last year, according to the sources.

Kookmin Bank plans to cut back on hiring new staff this year by 25 percent from last year, they said. Kookmin recruited 46 new employees who graduated from foreign universities in the first six months of this year, compared with 92 a year earlier.

Nonghyup Bank is no exception. It hired 300 new employees in the January-June period, nearly a half of 580 recruited in the corresponding period last year.

In the second half, Nonghyup plans to recruit 200 new employees, compared with 558 it hired in the July-December period of 2012.

By Josephine Liu Yan Yee

Park Sae-jin swatchsjp@ajunews.com