U.S. Automakers Push Back Against EU Rules Blocking American Trucks from European Market 
Anthropic's Mythos AI Model Sparks Emergency Cybersecurity Meeting With Top U.S. Bank CEOs 
SanDisk Joins Nasdaq-100, Replacing Atlassian on April 20 
China's Factory-Gate Prices Rise for First Time in Over Three Years Amid Global Cost Pressures 
Gulf Ceasefire Cracks Rattle Asian Markets and Push Oil Prices Higher 
Bank of America Identifies Top Asia-Pacific Semiconductor Stocks Poised for AI-Driven Growth 
OpenAI Addresses Security Vulnerability in macOS App Certification Process 
Goldman Sachs, ANZ Cut Oil Forecasts Amid U.S.-Iran Ceasefire Hopes 
Tokyo Electric Power Attracts Major Investors Amid Billion-Dollar Restructuring Push 
Trump Slams Iran Over Strait of Hormuz Oil Restrictions Amid Fragile Ceasefire 
Kia Cuts EV Sales Target for 2030 Amid Slowing Demand and U.S. Policy Shifts 
MATCH Act: How New U.S. Chip Legislation Could Freeze China's Semiconductor Ambitions 
Gold Prices Rise on Weaker Dollar and Ceasefire Hopes 
U.S. Markets Post Strong Weekly Gains Despite Middle East Tensions and Rising Energy Prices 
Chinese Brands Are Taking Over Brazil — And It's Just Getting Started 
China's AI Stocks Surge as Zhipu and MiniMax Hit Record Highs 
U.S. Natural Gas Market Faces Short-Term Pressure but Long-Term Demand Surge 
Shinhan Bank revealed its plans to get rid of more than three dozen bank branches before the year ends. It was reported that the financial institution cited the high operating costs and decreasing interest income as the reasons for the decision.
The Korea Times mentioned that Shinhan Bank actually closed down six branches already, and it was announced that 40 more are set to be discarded in the second half of 2021. This means that the total number of banks to be shut this year is close to 50.
Shinhan struggling to keep up with the costs
Shinhan Bank is the very first bank recorded in the history of South Korea however, it was reported to be falling behind in terms of digitization since it still offers services in the traditional way. Upgrading all the banks it owns will cost a lot, so most of the branches are not digitized.
Moreover, it was said that the financial institution spends around ₩1.7 billion or about $1.4 million per year to maintain and keep just one branch open in a commercial spot in Seoul. With this amount, it surely shows why it is struggling to keep with the operating costs for dozens of branches.
"It is difficult to find a reason to operate costly branches since key services are available online,” an official from Shinhan Bank said. “We will continue to maintain stellar customer services."
It is not just Shinhan that is discarding bank branches these days. In fact, three other premiere banks in South Korea that include KB Kookmin, Woori Bank, and Hana Bank, have plans of shutting a number of outlets too. Along with Shinhan, these are the five major commercial lenders, and they are about to shut a combined total of 160 branches this year.
Shinhan’s voluntary retirement plan
In any case, with the upcoming closure of 40 Shinhan Banks, many of its employees will surely lose their jobs. This is why the applications for voluntary retirement in Shinhan have increased.
This plan is said to be sought out by younger employees so they can leave the companies with higher severance pay. Korea’s News Directory3 reported that Shinhan Bank accepts voluntary retirement applications for staff who are 49 and older and have worked for the company for over 15 years.
“The opinions of on-site employees to expand the target of voluntary retirement has continued, and we have decided to review it to support the needs of employees and the stable second life of employees,” a bank official said. “We plan to provide continuous support, such as providing a variety of support such as health checkups and care.”
