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Photo = Shinhan card |
[Alpha Biz= Kim Jisun] Shinhan Card has initiated a second round of voluntary retirement in less than six months as part of its cost-cutting measures in response to ongoing profitability challenges. The company previously accepted 62 employees for early retirement at the end of last year.
According to financial industry sources on June 4, Shinhan Card will accept applications for voluntary retirement until June 19. The company’s labor union announced on its bulletin board that it had reached an agreement with management to proceed with the program.
The eligible age group has been expanded compared to the previous round, now including employees born between 1968 and 1979 (previously limited to those born between 1968 and 1974). In addition to statutory severance pay, the company will offer up to 30 months of special compensation—24 months as the base amount, with an additional six months depending on position.
The move is considered unusual, as voluntary retirement programs are typically conducted at year-end. It marks the first such action since CEO Park Chang-hoon took office in January and comes amid increased pressure to tighten cost control after Shinhan Card lost its top market position to Samsung Card for a second consecutive year.
In the first quarter of this year, Shinhan Card posted KRW 136.9 billion in net profit, down 26.27% year-over-year. In contrast, Samsung Card recorded a 3.7% increase with KRW 184.4 billion, once again surpassing Shinhan. For the full year of 2024, Shinhan Card recorded KRW 572.1 billion in net income, trailing Samsung Card’s KRW 664.6 billion.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
