KEPCO Bears 200 Trillion Won Debt
Self-Help Measures to Overcome Financial Crisis
"Bold Innovation to Be Pushed Swiftly"
Korea Electric Power Corporation (KEPCO), burdened with debt exceeding 200 trillion won, will implement voluntary retirement on June 15.
This is part of self-help measures to overcome a severe financial crisis.
Relatively junior employees in their 4th year of employment (3 years of service) are also eligible for voluntary retirement. The application period for voluntary retirement is from the 30th to the 8th of next month, and those eligible will receive additional consolation payments on top of their severance pay.
KEPCO stated that it has secured about 12.2 billion won in funds for voluntary retirement consolation payments from the '2022 management evaluation performance bonuses' voluntarily returned by employees. KEPCO has set the maximum consolation payment limit at 110 million won and plans to pay different amounts according to the length of service.
Employees eligible for honorary retirement with more than 20 years of service will receive 50% of the honorary retirement pay, while employees with less than 20 years of service who are eligible for early retirement will receive 50% to 300% of early retirement pay, which is equivalent to six months of monthly salary, depending on their length of service. If the number of applicants exceeds the available funds for voluntary retirement, KEPCO will implement voluntary retirement by filling 80% of the slots with employees who have 20 or more years of service.
Additionally, 20% of the total voluntary retirement quota will be selected from employees with 4 or more years but less than 20 years of service. KEPCO explained that this is to fairly provide voluntary retirement opportunities to employees who participated in salary returns.
KEPCO stated, "We will continue to rapidly pursue bold innovations across the entire management system, beyond voluntary retirement, to overcome the management crisis caused by worsening financial conditions," and added, "We will transform into an efficient organization that meets public expectations and become a trusted leading energy public enterprise in Korea."
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