Hyundai Steel is implementing voluntary retirement for employees aged 50 and older across all job categories. Previously, voluntary retirements were partially conducted at the Pohang No. 2 Plant, but this marks the first time since its founding in 1953 that it has been implemented across all sectors, including general, research, and technical positions.
According to Hyundai Steel on the 26th, the company announced this information through an internal notice that afternoon. Applications for voluntary retirement will be accepted until the 18th of next month, with management set to individually review applications to determine eligible retirees. Technical positions will exclude those aged 60 from the voluntary retirement program.
Those selected as eligible for retirement will receive 50% of their remaining annual salary (up to 3 years) in additional compensation, separate from their severance pay. Educational allowances will also be provided at 10 million won per child for a maximum of three children. Performance bonuses and one-time payments will be given based on the company's final proposal at the time of retirement.
This voluntary retirement decision comes just 12 days after Hyundai Steel entered an emergency management system. At that time, the company noted that "it is difficult to improve management without drastic self-rescue measures in the face of severe domestic and international crisis situations," announcing measures including a 20% cut in executive salaries, minimizing overseas travel, and reviewing voluntary retirement.
Hyundai Steel is experiencing a downturn in business due to a decline in the construction market and cheap imported steel products. Last year, its revenue was 23.2261 trillion won, a decrease of 10% compared to the previous year. Operating profit was 314.4 billion won, representing a 60% drop, marking the third consecutive year of decline since it recorded 2.4475 trillion won in 2021.
In addition to the downturn, Hyundai Steel is facing a 25% tariff imposed by U.S. President Donald Trump on Korean steel products, as well as conflicts with labor unions over wage and collective bargaining agreements. Hyundai Steel previously proposed a plan to pay 450% of base salary plus a flat 10 million won as bonuses, but the union rejected this and began a general strike today.