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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL — SKC, the chemical and advanced materials unit of SK Group, is initiating a voluntary retirement program for the first time since 2016. The move follows a period of significant financial strain, highlighted by a 305.0 billion KRW (approx. $220 million) operating loss last year, as the petrochemical and electric vehicle (EV) battery materials sectors face a prolonged global downturn.
Downsizing for Survival
According to industry sources on the 16th, SKC will accept voluntary retirement applications through the end of this week. The program is open to nearly all employees, excluding those with less than one year of tenure. To incentivize the transition, the company is offering a severance package that includes a consolidated bonus equivalent to 50% of the employee’s annual salary.
This restructuring mirrors similar cost-cutting measures within the conglomerate; last month, SK On, the group’s battery making arm, also completed its own voluntary retirement window as the EV "chasm" continues to impact the bottom line.
Betting on the Future: Glass Substrates
Despite the layoffs, SKC is aggressively pivoting toward next-generation technologies. The company recently resolved to raise approximately 1 trillion KRW ($720 million) through a new stock issuance (rights offering).
The capital injection is strategically earmarked as follows:
Advanced Materials R&D: Approximately 590 billion KRW (60%) will be invested in Absolics, SKC’s subsidiary specializing in glass substrates—a breakthrough material expected to revolutionize high-performance computing and AI chips.
Financial Stability: The remaining 410 billion KRW will be used to pay down debt, aimed at shoring up the company's balance sheet amid high interest rates.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
