Voluntary Retirement at Major Marts... Lotte Tightens Internal Management

Lotte is pursuing personnel renewal and internal strengthening by implementing voluntary retirement and unpaid leave in its core distribution business.

Lotte World Tower. Provided by Lotte

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According to the retail industry on the 30th, Lotte Mart and Lotte Super announced their voluntary retirement plan on the company bulletin board the previous afternoon. Eligible applicants are employees who have served at the same rank for at least eight years and are aged 48 or older. Those who choose to retire voluntarily will receive severance payments of up to 36 months of their base salary, depending on their years of service, rank, and position.

In addition to re-employment support funds, the company will also provide re-employment support services to those who wish to use them. For employees with children currently enrolled in university, the company will support tuition of 10 million won per child, up to a maximum of three children.

This is the first time in about three years since 2023 that Lotte Mart and Lotte Super are implementing voluntary retirement. The company explained that the measure is intended to enable a flexible response to the rapidly changing retail environment. Taking this voluntary retirement as an opportunity, Lotte plans to establish a virtuous cycle of workforce renewal by hiring more than 100 new and experienced employees this year.

On the 28th, Lotte Department Store announced through an internal notice that it would accept applications for 'refresh leave' from all employees with at least five years of service. Employees can choose between one month, three months, or six months of unpaid leave. Since last year, Lotte Department Store has been implementing this system twice a year for interested employees. From the company’s perspective, this expands employee welfare and is also expected to reduce labor costs and other expenses during the leave period.

However, Lotte Department Store clarified, "Since our recent performance and the state of the department store business is not bad, this is not for organizational restructuring or cost reduction," adding, "This is a welfare program intended for employees who wish to recharge or receive training."

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