South Korean carriers are increasing severance pay to encourage employees to take early retirement amid a refresh of their business portfolios and workforce restructuring.
KT Corp, South Korea's second-largest telecoms company, recently raised the maximum severance pay for early retirees from 330 million won ($238,000) to 430 million won.
The company also pays voluntary retirement benefits to employees who have worked for more than 15 years and accept voluntary retirement applications until November 4.
Observers say the restructuring efforts will help KT downsize and create space to recruit a new workforce focused on emerging technologies such as artificial intelligence and big data.
Compared to its competitors, KT has a particularly large number of employees. According to the semi-annual report, as of June 2024, KT had a total of 19,370 employees, including 753 contract workers.
SK Telecom, the country's largest wireless carrier, employs 5,741 people, including 310 contract workers, while LG Uplus has 10,695 employees, including 226 contract workers.
"The average age of employees at telecom companies tends to be higher than in other industries, due to the stable nature of the business, which mainly focuses on mobile subscribers," an industry official said.
SKT's voluntary retirement program is called Next Career. The company has just increased the severance pay for employees over 50 years old, from the initial 50 million won to 300 million won.
LG Uplus also accepts voluntary resignation applications in 2022 for employees who have served for more than 10 years and are over 50 years old.
(According to Korea Herald)
Source: https://vietnamnet.vn/nha-mang-han-quoc-khuyen-khich-nhan-vien-nghi-huu-som-2337151.html
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