South Korean brokerage houses are scaling down and downsizing staff as they expect a protracted correction in the Korean markets.

The number of local branches among financial brokerages fell 21 percent from 2014 to 998 as of late September this year, according to Korea Financial Investment Association on Monday. The number has been continuously trending downward and finally fell below 1,000 this year. Payroll staff has also dropped to 36,000 from 44,000 in 2011.

KB Securities Co., which emerged anew after a merger with Hyundai Securities in 2016, shuttered three outlets this month alone. It also started receiving applications for voluntary retirement for the first time since 2016 and plans to wrap up the program by the end of this year.

Retirees would receive a severance package of 27 to 31 months’ pay based on their age plus an additional 30 million won ($26,636). “Demand for voluntary retirement has been fairly high as our workforce tends to be older compared to other financial firms,” said a KB Securities official.

Industry leader Mirae Asset Daewoo Co. also closed three branches in recent months and is mulling voluntary retirement for employees with at least 10 years of service.

Daishin Securities Co. announced plans to shut down one branch each in the cities of Ulsan and Daegu.

Some firms have set out to sell their office buildings in an attempt to shore up their balance sheets. Meritz Securities Co. recently sold off its two offices in Yeouido, Seoul to Korea Credit Bureau and Mastern Investment Management. NH Investment & Securities Co. is also in the preliminary stages of selling its headquarters building in Yeouido.

By Han Woo-ram and Kim Hyo-jin

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