BOK loses young employees due to noncompetitive salary

Photo from Getty Images By Lee Kyung-min An increasing number of Bank of Korea (BOK) employees are leaving the bank, frustrated by their stagnant salaries compared to their peers at commercial lenders, data showed Wednesday. Advancing the collective move is the annual salary differential between the two of nearly 10 million won ($7,338) over the 38 post-pandemic months of tightening. Many commercial lenders raked in profit, underpinned by rapid increase in borrowing costs with their net income breaking records every year since 2020.

Read More 4 financial groups register record earnings on strong interest income Financial groups' average salary hits nearly W100 mil. in H1 According to the BOK's data submitted to the National Assembly Strategy and Finance Committee, BOK employees' salaries averaged 107.4 million won last year.



The figure was a steady-yet-small increase from 100.6 million won in 2020; 103 million won in 2021 and 103.3 million won in 2022.

In contrast, the figure for employees at the country's top four commercial lenders — KB Kookmin, Shinhan, Hana and Woori — stood at 116 million won last year. It was a far sharper increase from 98 million won in 2020. The figures came to 105.

5 million won in 2021 and 112.8 million won in 2022. This led to commercial lenders' employees making more money than their BOK peers in 2021.

The gap between the two was 5.2 million won in 2021 but was widened to 9.5 million won in 2022.

A total of 160 employees left the BOK in 2022, following 132 in 2020 and 136 in 2021. A total of 80 "young" BOK employees, defined as the 4th- and 5th-grade employees on a scale of five, quit in 2022. It was an increase from 62 in 2020 and 71 in 2021.

Hard work does not necessarily translate to promotion either, according to a BOK official. "Promotion opportunities are limited, the sense duty for the betterment of the country can only motivate employees so far," he said on condition of anonymity. "Adding to that sense of unfairness is when my coworkers and I hear about someone whose academic performance was far poorer than ours earning much more money than us in a private sector job.

" According to a survey by the Korea Institute of Public Administration in 2022, nearly half, or 45.2 percent, of public servants in central government and municipalities said they were willing to quit for higher-paying jobs if opportunities arose, up 11.7 percent from the previous year.

Among the reasons for quitting were the heavy workload relative to salaries, frequent overtime including night shifts and weekends and the weak prospect of promotion. The state-run research body recommended that government organizations establish a transparent employee evaluation system and performance-based remuneration. "The once-popular public service positions are losing luster, in part to an organizational culture with little flexibility compounded further by steep pension cuts.

".