Lotte Engineering & Construction is implementing a voluntary retirement program as the prolonged downturn in the construction industry continues. The move comes amid a wave of workforce restructuring across the sector as builders struggle to weather the persistent slump.
Up to 30 Months' Severance Plus Tuition Support and Outplacement Services
Lotte E&C posted its voluntary retirement plan on the company bulletin board on the 13th. The program targets long-serving employees and those subject to salary peak arrangements.
Applicants will receive severance payments of up to 30 months' base salary depending on their length of service. An additional special severance payment of 30 million won ($22,000) will be provided separately, and employees with children enrolled in college or below will receive 10 million won per child for tuition support. Outplacement consulting services will also be offered.
"The goal is to improve organizational efficiency through workforce circulation," a Lotte E&C official said. "This is not simply about reducing headcount but a preemptive measure to build a younger, more resilient organization."
The company emphasized it will conduct new hiring alongside the voluntary retirement program. Following the recruitment of 39 new employees in the first quarter, the company plans to continue hiring both new graduates and experienced workers from the second quarter onward.
Workforce Cuts Sweep Construction Industry as Employment Indicators Flash Red
Lotte E&C's voluntary retirement program is part of a broader workforce restructuring trend across the construction industry.
According to industry data, the total number of employees at Korea's five largest construction firms fell from 29,655 at the end of 2024 to 27,612 at the end of 2025—a decline of more than 2,000 in a single year. DL E&C saw the largest reduction at 847 employees, followed by GS E&C with 487, Daewoo E&C with 357, and Hyundai E&C with 247.
Major builders ranked among the top by construction capacity, including Hyundai Engineering and POSCO E&C, are also accelerating organizational streamlining by considering voluntary retirement programs or reducing executive headcount. SK Ecoplant and POSCO E&C did not conduct new graduate recruitment at all, and DL E&C has not posted new graduate hiring notices since 2023.
Employment indicators are also alarming. The number of construction industry workers has declined for 21 consecutive months since June 2024. Construction output value fell 16.2% year-on-year, marking the steepest drop since 2008, while construction investment growth plunged to -9.9%, the lowest level since the foreign exchange crisis.
In 2025 alone, the number of construction sites in Korea decreased by approximately 20,000 compared to the previous year, sharply reducing available work. A vicious cycle has taken hold across the industry, where declining orders and disappearing project sites lead to workforce cuts.