The Korea Federation of Banks proposed reformed guidelines for recruitment process in South Korea's banking industry, Yonhap News Agency reported June 5.
This comes after the emergence of alleged recruitment irregularities in the sector, as well as to boost fairness and transparency, the banking association said.
The nonbinding rules proposed the reintroduction of mandatory written tests and the use of external experts in at least one part of the hiring process, which also includes document screening and interviews.
They also called for the adoption of a "blind recruitment" system where prospective employers interview applicants without first obtaining basic information about them, so as to avoid discrimination based on gender, age, school or birth.
The rules will also ban special selection recruitment through recommendation, the association said, and those guilty of hiring irregularities will face penalties. Applicants who were victimized by unfair action in a hiring process must also be compensated.
According to the association, 19 banks including Shinhan Financial Group Co. Ltd.'s Shinhan Bank Co. Ltd., Hana Financial Group Inc.'s KEB Hana Bank, KB Financial Group Inc.'s KB Kookmin Bank, Woori Bank and Citibank Korea Inc. have pledged to accept the guidelines, which are expected to be announced July 11 following feedback and approval procedures.
Some financial institutions in South Korea have been under fire amid accusations they gave special favors or treatment to applicants connected to top bank executives or clients.
The former head of the regulatory Financial Supervisory Service, Choe Heung-sik, resigned in March, while KEB Hana Bank CEO Ham Young-joo was slapped with an arrest warrant, after both were accused of being involved in hiring irregularities.
