LG Display (034220.KS) is implementing a voluntary retirement program with the largest compensation package in the company's history.
According to industry sources on Wednesday, LG Display will begin accepting voluntary retirement applications from January 9 for technical staff with at least five years of service and office workers with at least 20 years of service or aged 45 or older.
Severance payments will be provided up to three years' worth of salary depending on length of service. The calculation reflects differences in salary structures between technical and office positions. Additional education subsidies for employees' children will also be provided. The voluntary retirement program is based on individual applications, with final selections made through a review process. All voluntary retirement procedures are expected to be completed by the end of next month.
"This voluntary retirement program will serve as a foundation for establishing a long-term workforce circulation system and securing fundamental competitiveness as a technology-focused company," an LG Display official said. Engineers under 50 years old are accordingly excluded from the voluntary retirement program. LG Display also announced internal notifications on Wednesday regarding wage and collective bargaining decisions, including an average 3.7 percent wage increase and welfare system reforms.