The head of South Korea’s top financial watchdog said Monday that nine major public financial institutions will adopt a merit-based pay system.

During a meeting with the head of public financial organizations in Seoul, Financial Services Commission(FSC) Chairman Yim Jong-yong said the nine agencies including the Korea Development Bank(KDB) and the Industrial Bank of Korea(IBK) will abolish the seniority-based system for most of their employees, except for those in the lowest tier posts and technical positions.

Yim said a performance-based salary system will be introduced instead.

He said the organizations will be subject to the strictest work evaluation standards possible for public organizations, adding the performance-based system will not be limited to salaries, but will also apply to personnel management.

The meeting was attended by the heads of the nine institutions such as the Export-Import Bank of Korea and the Korea Credit Guarantee Fund, among others.