SKC Introduces Voluntary Retirement Program Amid Battery and Petrochemical Slump to Streamline Operations

Severance Pay Set at 50% of Annual Salary
Final Approval and Retirement Date Undecided

SKC will implement a voluntary retirement program for employees who joined the company before January 2025. This move is seen as a measure to improve cost structure and enhance organizational efficiency amid a prolonged industry downturn.

According to industry sources on March 16, SKC will accept applications for voluntary retirement from employees from today until the 20th. Employees who joined after January 1, 2025, are excluded from this voluntary retirement program.

The severance pay for voluntary retirement will be 50% of the employee’s annual salary. The final approval and the exact timing of retirement have not yet been determined.

This is the first time in 10 years that SKC has conducted a voluntary retirement program, the last being in 2016. Analysts believe that the company has decided to reduce its workforce through voluntary retirement due to the prolonged slump in its main businesses—petrochemicals and electric vehicle battery materials.

Last year, SKC posted an operating loss of 305 billion won, with the deficit widening compared to the previous year.

SKC is also working to secure funds to accelerate the growth of its future businesses and strengthen its financial soundness. Last month, the board of directors approved a rights offering worth 1 trillion won, about 60% of which will be invested in the next-generation glass substrate business, with the remaining 40% to be used for repaying debt in order to improve financial health.

An SKC official stated, "We are implementing the voluntary retirement program to streamline operations," adding, "The capabilities and resources secured will be focused on securing mid- to long-term growth engines and enhancing the competitiveness of our core businesses."

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