Hyundai Department Store Group Announces Compensation Plan for Daejeon Branch Fire: "Business Suspension Living Support Fund and Contract Payment Provided"

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[Asia Economy Reporter Jeon Jinyoung] Hyundai Department Store Group announced compensation measures on the 5th for tenant partner companies, middle management managers and sales staff of partner brands, as well as subcontractors, in relation to the fire accident at Hyundai Premium Outlet Daejeon Branch. The plan includes providing emergency living support funds to employees struggling due to business suspension and paying 100% of subcontracting fees to subcontractors until business normalization.

Hyundai Department Store Group first decided to provide emergency living support funds to about 1,000 people, including middle management managers and sales staff of partner brands who are facing difficulties due to the business suspension caused by the fire accident at the Daejeon branch. Middle management managers will receive support funds of 3.5 million KRW, while general sales staff will receive 2.5 million KRW.

A Hyundai Department Store Group official explained, “We have urgently prepared living support funds for middle management managers and sales staff who are struggling due to the sudden business suspension caused by the fire accident,” adding, “We plan to do our best to minimize their damages by preparing additional support measures in the future.”

In addition, payment for partner companies facing financial difficulties due to the business suspension at the Daejeon branch will be made early. About 300 partner companies trading with the Daejeon branch will receive approximately 25 billion KRW in September payments up to 24 days earlier than the original payment date.

Support measures have also been prepared for subcontractors such as facilities, cleaning, and security. To ensure there are no issues with fund management such as salary payments due to the business suspension at the Daejeon branch, subcontracting fees will be paid in full until business normalization. Additional support measures for employees belonging to subcontractors are also under review.

Furthermore, compensation procedures will be carried out for tenant partner companies’ inventory that cannot be sold due to the Daejeon branch fire. Regarding this, Hyundai Department Store stated, “We are currently conducting on-site inventory inspections to accurately grasp the scale of damage to partner companies.” In addition, emergency interest-free loans will be provided to small and medium partner companies that may face financial difficulties due to the business suspension at the Daejeon branch.

A Hyundai Department Store Group official said, “We deeply feel a heavy responsibility for the Daejeon branch fire accident and plan to implement various compensation measures,” adding, “Once again, we sincerely apologize to everyone affected by this accident.”

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