Hyundai Oilbank, Executive Salaries Reduced by 20%

[Asia Economy Reporter Park So-yeon] Hyundai Oilbank has launched an emergency management system, including executive salary returns, to proactively respond to the spread of COVID-19. As a result, the salary returns of executives have expanded to all affiliates of Hyundai Heavy Industries Group.

On the 24th, Hyundai Oilbank resolved to implement an emergency management system focused on a 20% salary return by all executives, including President Kang Dal-ho, and a reduction of up to 70% in expense budgets, aiming for a comprehensive cut of unnecessary costs.

Since last year, when refining margins deteriorated, President Kang Dal-ho has been presiding over emergency meetings every week to devise cost-saving and profit improvement measures.

The domestic refining industry is facing deep concerns as the COVID-19 crisis has reduced product demand, causing crude oil prices and product prices to fall simultaneously, significantly decreasing refining margins and accumulating losses related to inventory.

Since the end of 2014, starting with Chairman Kwon Oh-gap, executives of all affiliates of Hyundai Heavy Industries Group, including shipbuilding affiliates such as Hyundai Heavy Industries, as well as Hyundai Construction Equipment, Hyundai Electric, and Hyundai Global Service, have been returning their salaries.

Chairman Kwon Oh-gap of Hyundai Heavy Industries Group stated in a statement on the 17th, “For the past six years, we have practiced self-help efforts and structural improvements with the sole and urgent goal of ‘survival.’ In this process, we have encountered an unexpected obstacle in the form of the novel coronavirus infection, leading each company to declare emergency management and implement measures to minimize damage.” He urged everyone to unite their efforts to overcome the crisis.

This content was produced with the assistance of AI translation services.