LX Launches Emergency Management System... Executives Return Salaries and Push for Asset Sales

CEO and Private Experts Participate
Operation of LX Emergency Management Innovation Committee and Intensive Inspection

Eom Myung-so, President of the Korea Land and Geospatial Informatix Corporation (LX), announced that the company will enter an emergency management system by having executives return their salaries and selling idle assets.

Eom Myeong-so, President of LX Corporation, visited the Ministry of Land, Infrastructure and Transport press room in Sejong on the 30th to declare the transition to an emergency management system to overcome the management crisis and provided related explanations. (Provided by LX Corporation)

On the 30th, President Eom held a press conference at the Government Complex Sejong and said, "Due to a decrease in surveying demand and an increase in labor costs, we recorded a deficit of 11 billion KRW last year for the first time, and a deficit of 50 billion KRW is expected this year."

In fact, LX Corporation’s revenue decreased by 27.5% compared to the previous year due to reduced surveying demand, while expenditures such as labor costs increased by 15%. LX’s workforce grew by about 20% (758 employees) from 3,853 in 2016 to 4,611 last year, and labor costs rose by about 15% (61.9 billion KRW) from 391.2 billion KRW to 453.1 billion KRW during the same period.

Accordingly, President Eom announced that the management team will return 20% of their salaries, and regional headquarters chiefs will voluntarily return 10% of their salaries.

He also stated that through consultations with the labor union, they will reduce labor cost expenditures by improving overtime pay and the paid annual leave system.

President Eom further announced plans to sell eight unnecessary idle assets, including the land of the Land Information Education Center in Yongin City, and to promote gradual organizational and workforce efficiency improvements.

He said they will focus on discovering new business models and technological innovation by expanding new businesses that integrate spatial information with cadastral surveying, and by entering the private and global markets, including companies like Naver, to secure orders for spatial information infrastructure projects.

President Eom stated, "Although the situation LX Corporation faces is challenging, we will actively overcome the crisis through cooperation with the labor union and employees."

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