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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] LG Chem has expanded its voluntary retirement program to include the Advanced Materials Division, following earlier rounds initiated within its petrochemicals business. The move indicates that the scope of restructuring is widening from petrochemicals to semiconductors, battery materials, specialty chemicals, and now advanced materials.
On December 8, LG Chem confirmed that it is currently surveying employees in the Advanced Materials Division to identify interest in voluntary retirement. Eligible employees include both office and production staff born in 1970 or earlier (55 years of age and above). Participants may receive severance compensation equivalent to up to 50 months of salary. Employees with fewer than three years remaining until retirement will be compensated for the remaining months.
The previous voluntary retirement program, implemented in August, applied to employees in the petrochemicals division. Additionally, the company continues to accept voluntary retirement applications from employees aged 58 and older who are subject to the wage-peak system, with compensation based on salary for the remaining period until retirement.
Both the Advanced Materials and Petrochemicals divisions are conducting the program through individualized outreach to eligible employees. The decision is seen as part of LG Chem’s broader restructuring efforts, particularly as the company continues to work through adjustments related to its naphtha cracking center (NCC) operations in Yeosu.
LG Chem’s petrochemicals business has recorded operating losses of KRW 143.5 billion and KRW 135.8 billion in 2023 and 2024, respectively. As of the third quarter of this year, the division reported a cumulative operating loss of KRW 117 billion.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
