Kumho Petrochemical, '35 Years Without Disputes'... "Reaffirming Labor-Management Trust"

This Year's Labor-Management Agreement Concluded Without Disputes

Participants in the 2022 wage agreement at Kumho Petrochemical pose for a commemorative photo. From the left: Im Myeon-ho, Vice Chairman of Yeosu Rubber Plant; Noh Tae-young, Chairman of the Ulsan Resin Plant Labor Union; Moon Dong-jun, President; Baek Jong-hoon, Vice President and CEO; Lee Yong-jae, Chairman of the Ulsan Rubber Plant Labor Union; Ko Young-do, Executive Director of the Management Headquarters. (Photo by Kumho Petrochemical)

[Asia Economy Reporter Moon Chaeseok] Kumho Petrochemical announced on the 24th that this year's wage agreement between labor and management was concluded without any disputes. With three labor unions delegating wage agreement matters to the management, the company has continued 35 years of dispute-free labor-management negotiations.

No Taeyoung, chairman of the Kumho Petrochemical Ulsan Suji Plant labor union, said at the delegation ceremony, "Despite the challenging business environment last year, labor and management showed mutual consideration and did their best in their respective duties, achieving the highest-ever performance." He added, "Since there are many difficulties both inside and outside the company this year as well, we decided to entrust the wage negotiations to the management to prepare for these challenging times together." In response, Baek Jonghoon, Vice President and CEO of Kumho Petrochemical, said, "I believe that today's Kumho Petrochemical was built on the trust between labor and management that has continued for 35 years." Kumho Petrochemical Chairman Park Chan-gu also expressed gratitude, saying, "I appreciate the union's consideration and will strive to repay it with even better results."

Kumho Petrochemical recorded its highest-ever performance last year with consolidated sales of approximately 8.4 trillion KRW and operating profit of about 2.4 trillion KRW. At the 45th regular shareholders' meeting scheduled for the 25th, the company proposed dividends of 10,000 KRW per common share and 10,050 KRW per preferred share, the largest ever. Separately, the company repurchased treasury shares worth about 150 billion KRW for cancellation purposes. Including the dividend amount, this represents a shareholder return policy equivalent to 43.7% of net income on a separate basis.