LG Household & Health Care Opens Voluntary Retirement Applications for the First Time Since Establishment

LG Household & Health Care is implementing its first voluntary retirement program since its founding. This move is analyzed as an effort to streamline management due to deteriorating performance in the Chinese market caused by COVID-19.

LG Gwanghwamun Building, where LG Household & Health Care headquarters is located.
[Photo by LG Household & Health Care]

According to industry sources on the 2nd, LG Household & Health Care announced to all employees the previous day that it will accept applications for voluntary retirement for two weeks until the 14th of this month. Eligible candidates for voluntary retirement are division heads and team leaders aged 50 or older, with division heads having at least 7 years in the position and team leaders having at least 10 years in the position also eligible to apply.

LG Household & Health Care will pay employees who apply for voluntary retirement up to three years of their base salary depending on their birth year. Additionally, tuition fees for children in middle school, high school, and university will be supported within the semester limits until the retiree’s mandatory retirement age.

This voluntary retirement application is interpreted as a measure to improve workforce management efficiency. LG Household & Health Care’s sales in the first quarter of this year recorded 1.6837 trillion KRW, a 2.4% increase compared to the previous year, showing somewhat sluggish performance. Compared to the fourth quarter of last year, sales decreased by 6.9%. Operating profit recorded 145.9 billion KRW, down 16.9% from the previous year.

Previously, Amorepacific, which also experienced poor performance due to the impact of COVID-19, implemented voluntary retirement for the first time since its founding in 2020.

An LG Household & Health Care official explained the background of this voluntary retirement implementation as “to improve the stagnation in the workforce structure and create a virtuous cycle for the company’s sustainable growth.”