Lotte Department Store's First Ever 'Voluntary Retirement' Since Establishment... "Transforming into a Younger Organization"

[Asia Economy Reporter Jo In-kyung] Lotte Department Store is conducting its first voluntary retirement program in 42 years since its founding, targeting employees with more than 20 years of service.

According to Lotte Department Store on the 24th, the company announced through an internal notice yesterday afternoon that it will accept voluntary retirement applications from employees with over 20 years of service until the 8th of next month. The conditions include payment of 24 months' worth of wages (base salary + position allowance), a consolation payment of 30 million KRW, and up to 32 million KRW for children's education expenses. For applicants, a paid "Restart Leave" will be granted throughout November, and reemployment training will be provided for four months.

This is the first time Lotte Department Store has accepted voluntary retirement since its establishment in 1979. The department store explained that this decision is aimed at transforming into a younger organization in line with changing times. Among approximately 4,800 regular employees at Lotte Department Store, about 2,000 have more than 20 years of service.

A Lotte Department Store official stated, "Although we have been internally striving to improve our organizational structure since the year before last, we judged that the current congested personnel structure is unsustainable," adding, "We decided to proceed with voluntary retirement as part of rebuilding an efficient workforce structure that can sustain continuous growth."

Additionally, Lotte Department Store plans to select internship candidates linked to recruitment in regional areas in the second half of the year. Following the selection of about 50 interns in the first half, a similar number will be recruited in the second half, with at least 100 new hires expected this year.

Previously, another retail affiliate of Lotte Group, Lotte Hi-Mart, accepted voluntary retirement applications in March last year from employees aged 50 and above with more than 25 years of service. In February this year, Lotte Mart conducted its first voluntary retirement program targeting employees with over 10 years of service in its 23 years since establishment, resulting in about 90 employees retiring.

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