Doosan Heavy Industries & Construction, Over 350 Employees Begin Leave of Absence

On the 27th, the Doosan Tower building in Dongdaemun-gu, Seoul, is visible as the government decided to inject 1.6 trillion won into Doosan Heavy Industries, which is experiencing financial difficulties, through the Korea Development Bank and the Export-Import Bank of Korea. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Ki-min Lee] Doosan Heavy Industries & Construction began a temporary leave of absence for about 350 employees starting on the 21st.

The employees on leave at Doosan Heavy Industries & Construction consist of approximately 250 technical staff and 100 office workers. Doosan Heavy Industries & Construction explained that this leave was decided considering workload across all departments. Those on leave will not come to work for about seven months until the end of this year and will receive 70% of their average wages during this period.

Initially, Doosan Heavy Industries & Construction planned for more than 400 employees to take leave, but after the second voluntary retirement application period, the number of applicants increased, leading to a reduction in the scale of the leave. From February to March this year, Doosan Heavy Industries & Construction accepted voluntary retirement applications from about 2,600 employees born in 1975 (aged 45 and above), with about 650 employees leaving. Subsequently, from the 11th to the 15th of this month, additional voluntary retirement applications were accepted. Although about 100 employees applied during the second voluntary retirement period, after the leave announcement, about 80 employees individually applied for voluntary retirement, resulting in a total of about 180 employees leaving.

The leave also includes younger employees in their 30s. Four employees in their 20s applied for voluntary retirement after being selected for leave. A Doosan Heavy Industries & Construction official explained, "The 20-something employees who applied for voluntary retirement this time are not new hires who recently joined but employees who graduated from junior colleges and have been working in specialized professions for 6 to 7 years."

As of the end of March, Doosan Heavy Industries & Construction has 6,526 employees, including 837 contract workers.

Doosan Group has submitted a recovery plan to creditors, which includes securing more than 3 trillion won in liquidity to normalize Doosan Heavy Industries & Construction's management. In addition to restructuring Doosan Heavy Industries & Construction, Doosan is pursuing asset sales and capital increases.

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