LG Chem Extends Voluntary Retirement Program to Advanced Materials Division

LG Chem (051910.KS) is proceeding with a voluntary retirement program in its advanced materials division, following a similar initiative in its petrochemical business.

According to industry sources on Wednesday, LG Chem has recently begun surveying employees in its advanced materials business unit about their interest in voluntary retirement. The program targets employees born in 1970 or earlier (aged 55 and above), regardless of whether they are office workers or production staff.

The severance package offers up to 50 months of salary. Employees with three years or less remaining until retirement will receive compensation covering their remaining months of service.

LG Chem previously conducted a voluntary retirement program for its petrochemical division employees in August. The company is also reportedly accepting additional voluntary retirement applications from employees aged 58 and above who are subject to the salary peak system.

LG Chem's organizational restructuring is seen as part of a company-wide business reorganization, including adjustments to its naphtha cracking center (NCC) facilities in Yeosu. The company is streamlining its workforce by reducing the number of long-tenured employees.

The advanced materials division has seen continued decline in performance as the secondary battery market shows no signs of recovery. The division recorded revenue of 838 billion won and operating profit of 7 billion won in the third quarter, with operating profit down 95% from 132 billion won in the same period last year. Operating profit has steadily declined throughout this year, from 118 billion won in the first quarter to 71 billion won in the second quarter.