Hankook Tire Executives Voluntarily Return 20% of Salaries Due to Logistics and Raw Material Cost Increases...

[Asia Economy Reporter Kwon Jae-hee] Hankook & Company, the holding company of Hankook Tire & Technology (Hankook Tire), is cutting the salaries of executives across all its affiliates due to the impact of rising logistics costs and raw material prices. This voluntary salary reduction by the executives is drawing attention within the industry.

According to the tire industry on the 2nd, Hankook & Company decided last month to cut 20% of the salaries of executives at all its affiliates.

The salary cuts apply to six companies: Hankook & Company, Hankook Tire & Technology, Hankook Engineering Works, Hankook Networks, Hankook Precision Works, and Model Solution.

The number of executives subject to the salary cuts is about 100, including Cho Hyun-bum, Chairman of Hankook Tire & Technology.

The price of natural rubber, which was 187 yen (1,820 won) per kilogram last September, recently surged to 273 yen (2,600 won), showing an increase of nearly 50%.

Hankook & Company explained, "The rise in logistics costs and raw material prices that began last year has been further accelerated by Russia's invasion of Ukraine, causing raw material prices to soar. Therefore, the executives decided to voluntarily return part of their salaries starting from the second quarter."

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