SKT Implements Bold Retirement Program
'Next Career' Incentive Significantly Increased
Average Annual Salary Including Executives Approximately 150 Million KRW
SK Telecom is implementing a retirement program that provides severance pay of up to 300 million KRW.
On the 27th, SK Telecom announced that both labor and management agreed to implement the retirement program called 'Next Career,' which offers severance pay of up to 300 million KRW per employee. Next Career is a program where volunteers first take a two-year paid leave to pursue various ventures such as startups, and then choose to return to work or retire based on their own decision. If they decide to retire, they will receive severance pay plus consolation money of up to 300 million KRW per person.
SK Telecom has been operating the Next Career program since 2019, with the previous maximum consolation payment capped at 50 million KRW. As of last year, the average annual salary of SK Telecom employees was 145.93 million KRW. This is the highest among the three major telecom companies and ranks within the top 10 highest salaries among domestic companies. Industry insiders interpret that although SK Telecom continues to post profits, it has initiated workforce restructuring due to the overall stagnation in the telecom business and large-scale investments in the artificial intelligence (AI) sector. Additionally, since the number of volunteers for this program was lower than expected in the past, the company has dramatically increased the consolation payment this time to encourage more participants.
Recently, SK Group has been accelerating business rebalancing (restructuring) across the group. On the 26th, SK On announced the 'New Chapter Support Program' related to voluntary retirement and unpaid leave for self-development to all employees. Eligible applicants for voluntary retirement are those who joined before November last year. SK On plans to pay 50% of the annual salary and short-term incentives to those who apply for voluntary retirement. Unpaid leave for self-development will also be implemented. It is reported that SK On will support 50% of tuition fees for up to two years if employees pursue degree programs (bachelor’s, master’s, or doctoral) through this program. If they return to work after obtaining a degree related to their job, the remaining 50% will also be supported. This is the first time SK On has implemented voluntary retirement and unpaid leave since its launch in 2021.
An SK On official said, "Due to the slowdown in business growth caused by the electric vehicle chasm (temporary demand stagnation), this is to improve management efficiency and secure a sustainable growth foundation. We will provide opportunities for self-development to employees and do our best to support those who want new choices."
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