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| The Bank of Korea / Yonhap |
By Yoon Ja-young
The Bank of Korea (BOK) was once known as "god's workplace," attracting some of Korea's smartest young people with high salaries and job security. However, the BOK's younger employees seem to be increasingly deserting their once-coveted jobs, as the central bank is failing to meet their expectations, while working conditions, compensation and company culture are all improving in the private sector.
According to data on the central bank submitted to Rep. Kim Soo-heung of the ruling Democratic Party of Korea, 311 employees quit their jobs at the BOK before reaching the legal retirement age between 2012 and 2021. The current legal retirement age is 60.
This means that around 30 BOK employees are quitting their jobs each year ― or 1 percent of all employees ― but the figure has been rising rapidly. According to media report, seven employees quit the BOK in January, followed by six in February this year.
Also notable is the fact that young people are quitting. Among the 311 who quit during the past decade, 135 were in their 20s or 30s.
"Previously, most of those who quit were aiming to get degrees. Recently, young people in particular are switching to jobs in the private sector, such as in fintech, private equity funds and asset management," an official at the central bank said.
A major factor behind the move is workers' dissatisfaction with their compensation. BOK employees were paid 107 million won ($87,848) on average last year. Their salary rose by a mere 0.9 percent last year, following a raise of 0.7 percent the previous year, as the finance ministry restricts steep pay raises.
These figures contrast with those of the private sector, where salaries have been rising sharply. The average salary at four securities companies ― BNK, Bookook, Hanyang and Meritz ― surpassed 200 million won last year. Male employees in charge of sales, fund management and research at these brokerages were paid 467 million won on average. Central bank workers who boast top qualifications might thus think they are not compensated enough. Some also point out that the BOK's conservative, bureaucratic and inflexible office culture, as found in a 2021 McKinsey survey of 1,300 central bank employees, doesn't suit the needs of the young generation.
The resulting brain drain has been causing serious concern, as the competence of the central bank is required for Korea's economy to be stable.
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