Taekwang Group's institutional sector in textiles and its polyester-focused subsidiary Daehan Synthetic Fiber carried out a voluntary retirement program for employees. Daehan Synthetic Fiber swung to a loss last year, posting an operating loss of 1.5 billion won, as raw material price volatility, China's large-scale capacity additions, and a global economic slowdown overlapped.
According to the industry on the 30th, Taekwang Industrial accepted applications for voluntary retirement from Daehan Synthetic Fiber employees earlier this month. Eligible applicants are employees aged 50 or older, or with at least 10 years of service. Applicants will receive severance pay ranging from a minimum of six months' base salary to a maximum of 24 months' base salary.
Earlier, Yoo Tae-ho, chief executive of Taekwang Industrial, noted the need to restructure the business on 29th through a letter to shareholders.
He said, "Now is the time to fundamentally reorganize the business portfolio," adding, "We will boldly optimize low-revenue businesses while maximizing competitiveness in businesses with proven high profitability through capacity additions and expansion."