KEPCO and Gas Corporation Clarify 'Million-Won Annual Salary Controversy'..."Caused by Long-Term Service and Shift Work"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Dongwoo Lee] Amid the controversy over the billion-won annual salary of energy public enterprises at the center of the 'heating cost bomb' crisis, Korea Gas Corporation and Korea Electric Power Corporation announced on the 18th that they will pursue strong self-help efforts. Gas Corporation explained that the increase in high earners was due to the payment of allowances for holiday and night work, and that they plan to reduce this through unmanned management offices.

Earlier, on the 15th, this outlet exclusively reported that while ordinary citizens are tightening their belts to cope with the increased household burden caused by the heating cost bomb this winter, the representative energy public enterprises, Gas Corporation and KEPCO, are holding a 'billion-won salary feast.' (Refer to "Ordinary citizens face heating cost bomb... KEPCO and Gas Corporation hold salary feast," dated February 15, 2023)

According to the 'Annual Profitability and Welfare Status of KEPCO and Gas Corporation' obtained through the office of Lee Joo-hwan, a member of the People Power Party, the number of employees who received billion-won annual salaries at the two companies last year was a total of 5,004. The total number of employees combined at the two companies was 27,689 as of last year, meaning that on average, one out of every 5.5 employees earns more than 100 million won annually.

Gas Corporation explained in a press release, "Among the billion-won earners last year, 577 were long-term shift workers (40.8% of billion-won earners) who received holiday and night allowances due to the operation of management offices installed for 24-hour gas supply." They added, "Compared to 2021, when the number of billion-won earners decreased due to the failure to receive performance bonuses because of a low management evaluation grade, the increase in the management evaluation grade last year led to the payment of performance bonuses and thus an increase in billion-won earners."

Gas Corporation stated, "To reduce labor costs, we are gradually unmanning currently manned management offices, and this year we plan to unman 18 management offices, reducing 90 shift workers. In February this year, we also reduced the workforce by 102 through organizational downsizing for workforce efficiency."

KEPCO also explained in a statement, "The increase in billion-won earners is mainly due to long-term service, including 661 shift workers who receive holiday and night work allowances for 24-hour power facility operation." They added, "To improve the seniority-based pay system, we introduced a job-based pay system for all employees last year to ease seniority."

KEPCO said, "We will continuously increase the proportion of job-based pay and expand differentiated compensation according to job duties to strengthen a job- and performance-centered pay system, and continue to pursue strong self-help efforts to overcome the financial crisis situation."

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