Dongkuk Steel, 970,000 Treasury Shares Granted as Labor-Management Chemical Incentive Payment

Jang Se-wook, Vice Chairman of Dongkuk Steel (right), and Park Sang-gyu, Union Chairman, are posing for a commemorative photo at the signing ceremony of the 2020 collective agreement on June 26.

[Asia Economy Reporter Hwang Yoon-joo] Dongkuk Steel is providing labor-management harmony incentive payments to encourage the efforts of workers combating the COVID-19 situation. This is the company's second support initiative following the COVID-19 disaster relief fund provided on June 26.

On the 15th, Dongkuk Steel's board of directors decided to grant labor-management harmony incentive payments to encourage workers' efforts toward achieving the 2020 management goals and to promote the development of a cooperative labor-management relationship. Accordingly, Dongkuk Steel will distribute approximately 977,000 shares of treasury stock to its employees, valued at about 7.759 billion KRW.

The Dongkuk Steel board recognized that labor-management harmony is the driving force behind achieving management goals despite the COVID-19 crisis and made this decision. Despite a sales decrease of 11% year-on-year to 3.8278 trillion KRW (consolidated basis) due to the COVID-19 crisis through the third quarter, operating profit increased by 31.2% year-on-year to 241.6 billion KRW.

On June 26, following wage negotiations, Dongkuk Steel also concluded the 2020 collective agreement early and distributed Onnuri gift certificates worth approximately 1.7 billion KRW as COVID-19 disaster relief funds to all employees.

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