LG Chem will offer voluntary retirement to employees with at least 20 years of service. As the slump in the petrochemical sector drags on, the company aims to proactively streamline its organization and focus on new businesses.
On Feb. 5, LG Chem said it will accept applications for about a month from that day through March 9. Employees who joined on or before Dec. 31, 2006, with roughly 20 years or more of service are eligible.
The program will proceed through voluntary applications, and final candidates will be selected after an internal review. The company plans to offer career transition and reemployment training programs to those whose voluntary retirement is confirmed.
In December last year, LG Chem carried out a voluntary retirement program in the advanced materials business. Regardless of office or production roles, employees born in 1970 or earlier were eligible. In August of the same year, the company offered voluntary retirement only to employees aged 58 or older subject to the wage-peak system in the petrochemical business headquarters.
Korea's petrochemical industry is experiencing a structural downturn due to the global economic slowdown and increased supply from China. Companies are accelerating portfolio restructuring, including improving facility efficiency through business reorganization.
A LG Chem official said, "We have proactively streamlined our business structure and organization to respond to changes in the management environment," and added, "We will improve our organizational makeup and push new businesses focused on high value-added areas such as semiconductor materials and next-generation advanced materials."