 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, August 27, 2025 — LG Chem has begun a voluntary retirement program for senior employees in its petrochemical division as the company faces prolonged industry headwinds.
According to the company, the program recently began at its petrochemical complexes in Daesan, South Chungcheong Province, and Yeosu, South Jeolla Province. The offer targets employees aged 58 and older who are subject to the wage-peak system, which guarantees employment until retirement age but reduces salaries. The package reportedly includes compensation equivalent to remaining wages until retirement and potential support for children’s university tuition.
The move comes as South Korea’s petrochemical sector undergoes restructuring amid intensifying competition from low-cost Chinese products. On August 20, industry players announced plans to cut domestic naphtha cracker (NCC) output by up to 25% and submit restructuring plans to the government by year-end. Analysts note that production cuts are likely to be accompanied by workforce reductions.
In the second quarter (April–June), LG Chem’s petrochemical unit posted an operating loss of KRW 90.4 billion, raising concerns over a prolonged downturn in the sector.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
