LG Chem Begins Voluntary Retirement Process for Petrochemical Division Employees under Wage Peak System

Process Begins Amid Prolonged Downturn
Targeting Employees Aged 58 to 60

LG Chem has initiated a voluntary retirement process for employees subject to the wage peak system in its petrochemical division. This move is seen as a response to the prolonged downturn affecting the entire industry.

LG Chem Daesan Plant Panorama. Photo by LG Chem

According to LG Chem on August 27, the company recently began confirming the intention to apply for voluntary retirement among employees aged 58 to 60 who are subject to the wage peak system at its Daesan and Yeosu plants. All employees eligible for the wage peak system, regardless of whether they are production or office workers, are included.

Applicants for voluntary retirement are reportedly eligible to receive compensation covering the remaining salary until retirement age, as well as support for their children's university tuition fees. However, the severance pay that is typically provided in cases of voluntary retirement is unlikely to be offered this time. An LG Chem representative stated, "This process is being carried out only for those who wish to participate among employees under the wage peak system."

In the first half of this year, LG Chem recorded consolidated sales of 23.5389 trillion won and an operating profit of 914.5 billion won. However, the petrochemical division posted operating losses of 56.5 billion won in the first quarter and 90.4 billion won in the second quarter. The domestic petrochemical industry as a whole continues to struggle with a prolonged slump due to the economic downturn, as well as oversupply from China and the Middle East.