There is a growing dissatisfaction among employees of South Korean brokerage houses, which have been hit by an unprecedented wave of restructuring, with respect to the conditions of proposed voluntary retirement packages

June 9, 2014 Leave a comment

Voluntary retirement allowances offered by brokerage houses half of banks

2014.05.30 14:32:38

There is a growing dissatisfaction among employees of South Korean brokerage houses, which have been hit by an unprecedented wave of restructuring, with respect to the conditions of proposed voluntary retirement packages.
While a simple comparison is inappropriate given the varying sizes and wage levels of the country’s brokerage houses, a significant gap with the bank industry appears clear. 
According to the securities industry Friday, most of the brokerage houses which have disclosed the conditions of their voluntary retirement programs plan to offer a maximum 24 months’ salary plus a livelihood stabilization allowance and educational allowances for children.
In the case of Woori Securities, which will merge with NH Investment & Securities, a general manager who has put in 20 years of service will receive a maximum 243 million won ($238,188), which includes 24 months’ salary and a livelihood stabilization allowance.
NH Investment is also considering offering 14 to 26 months’ salary to those who take early retirement.
In the case of Hana Daetoo Securities, those who sign up for voluntary retirement will receive between 10 to 24 months’ salary depending on the number of years they worked.
Samsung Securities will calculate retirement allowance by factoring in both job title and service years.
A general manager who has worked 20 consecutive years will receive about 255 million won, similar to other brokerage houses.
In comparison, banks are considering giving 36 months’ salary in voluntary retirement allowance, an average 12 months’ salary more than brokerage houses.
Citibank Korea has proposed to its union an early retirement package that offers 12 to 14 months’ salary as a special allowance in addition to 36 months’ salary in basic retirement allowance.
The bank also offered 10 million won in educational allowance per child for up to two children and health screening for three years after retirement.

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