"4-Hour Smoking Ban Before and After Lunch"... This Company Tightens Its Belt

Lotte Chemical Focuses on Emergency Management with Adjusted Working Hours
Encourages Use of Annual Leave and Video Conferences Instead of Business Trips

The Basic Materials Division of Lotte Chemical is launching emergency management measures, including recommending the reduction of 'cigarette breaks,' to overcome the sluggish market conditions.

"4-Hour Smoking Ban Before and After Lunch"... This Company Tightens Its Belt

[Image source=San Diego Family Health Center, USA]

On the 30th of last month, Lotte Chemical announced that it would begin emergency management starting from the 1st. This is interpreted as a preparation for the worsening petrochemical market conditions. According to the emergency management guidelines for business trips and attendance, smoking and the use of non-work-related messengers are to be refrained from during focused working hours, which are from 10 a.m. to 12 p.m. and 2 p.m. to 4 p.m.

The company also encouraged the use of annual leave. For full-time professionals, the use of annual leave will be increased up to 50%, and for managers, the company plans to guide a separate system to ensure 100% utilization of annual leave.

Additionally, domestic and international business trips will be replaced with video conferences as much as possible, and the number of personnel on business trips will be limited to a maximum of two. This is because the company has set a goal to reduce the business trip budget by 20% compared to the previous year. The class of executive airline tickets will also be downgraded by one level for flights under 10 hours.

Lotte Chemical has been facing difficulties due to the sluggish petrochemical market caused by high oil prices and the burden of capacity expansions from China, reporting an operating loss of 762.6 billion KRW in 2022 and a deficit of 347.7 billion KRW last year. In the first quarter of this year, it also recorded an operating loss of 135.3 billion KRW. Furthermore, it is expected to record an operating loss of 46.1 billion KRW in the second quarter of this year.