South Korea’s major commercial banks are sharply reducing entry-level recruitment even as profits and employee pay climb, signaling a structural shift in banking employment as digital transactions expand and artificial intelligence automates more traditional functions. The trend reflects a broader challenge for financial institutions worldwide, including U.S. banks, as they balance labor costs with investments in technology and specialized digital talent.
The four largest South Korean lenders — KB Kookmin Bank, Shinhan Bank, Hana Bank and Woori Bank — hired 1,880 entry-level employees in 2023, 1,380 in 2024 and 1,280 in 2025, according to financial industry data reported October 20.
Recruitment is expected to decline further this year. KB Kookmin, Shinhan and Hana plan to hire a combined 960 employees in 2026. Woori has not finalized its second-half hiring target but has announced plans to recruit at least several dozen employees. Even if Woori matches its first-half intake of 95, the four banks would hire about 1,150 entry-level workers this year, down 730, or 38.8%, from 2023.
The pullback contrasts with the banks’ strong financial performance. The four lenders have reported record annual profits in succession, while average employee pay rose by 8 million won, or 12.6%, year over year to 71.5 million won in the first half of 2026. That equates to approximately $50,000 in half-year pay. If compensation remains at a similar pace in the second half, average annual pay would exceed 140 million won, or roughly $98,000.
A shrinking branch network is one factor behind the decline in recruitment. The four banks operated 2,459 branches in the first half of 2023, compared with 2,448 a year later and 2,252 in the first half of 2025. The total fell to 2,201 in the first half of 2026, a decrease of 258 branches, or 10.5%, in three years.
As customers increasingly use mobile apps and online services for routine transactions, banks need fewer employees for traditional counter services. At the same time, lenders are shifting recruitment toward experienced professionals in information technology and AI, where specialized skills are becoming more important to future growth.
KB Kookmin is conducting separate rolling recruitment for experienced AI professionals in the second half of 2026, in addition to its entry-level hiring. Shinhan recruited for digital and information technology positions through a separate hiring round in March.
A banking industry official said the spread of AI and the shift toward digital transactions were fundamentally changing the financial sector’s workforce requirements. Banks are increasingly focused on securing specialized talent in digital technology and IT to support future growth, the official said.
For job seekers, the shift means fewer traditional entry-level opportunities even as banks remain profitable and continue investing in new capabilities. For investors, the changing hiring mix highlights how digitalization can reshape operating models and labor demand without necessarily weakening financial performance.
