It is reported that the mobility platform SOCAR is conducting voluntary resignations for underperforming employees. SOCAR has been experiencing losses after a temporary profit in 2022.
According to the industry on the 20th, SOCAR is currently conducting voluntary resignations for some underperforming employees. The exact number of reductions has not been disclosed. The target of the voluntary resignations includes positions from Head of Team to deputy level, and negotiations are underway with the company. The proposed voluntary resignations through individual interviews are not compulsory; if the individual refuses, they can continue to work. A SOCAR representative noted, "It is difficult to confirm individual matters related to internal human resources."
The implementation of voluntary resignations is seen as a management efficiency measure to overcome SOCAR's poor performance. After achieving an operating profit of 9.5 billion won in 2022, SOCAR recorded an operating loss of 9.7 billion won in 2023 and an operating loss of 9.8 billion won last year. Although the IPO offering price was 28,000 won during the public listing in 2022, the current stock price is at about 15,000 won, marking a significant drop.
The number of SOCAR employees has maintained around 460 from 2022 to 2024, but this year, with the incorporation of employees from SOCAR's online parking platform All Parking (about 40 employees), the total has increased to 511. SOCAR's selling, general and administrative expenses rose from 388 billion won in 2022 to 441.5 billion won last year, an increase of approximately 50 billion won over two years. Selling, general and administrative expenses encompass the costs associated with sales and company operations, including personnel expenses.
Launched in 2012, SOCAR has led trends in the domestic car-sharing market. SOCAR's car-sharing service allows users to rent cars through a mobile application. It has established over 5,000 SOCAR zones nationwide, achieving an 80% market share and over 13.5 million cumulative members.
Park Jae-wook, the CEO of SOCAR, expressed his determination to make this year a turning point for a rebound in performance and to improve profitability. In his revenue announcement last year, CEO Park said, "2024 will be a significant year for the profitability of the car-sharing business to improve in earnest and for the growth of the platform sector to accelerate," adding, "In 2025, we will achieve meaningful annual operating profit improvement through the optimization of vehicle asset management and enhancement of user convenience."