[Exclusive] Hyundai Steel Pipe launches another voluntary retirement program after about six months, speeding up restructuring

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[Financial News] Hyundai Steel Company is pushing ahead with the sale of its pipe subsidiary, Hyundai Steel Pipe, which has launched another voluntary retirement program after about six months. Industry observers say the move reflects efforts to streamline the organization and cut costs ahead of the sale, as weak earnings continue.
According to industry sources on the 15th, Hyundai Steel Pipe recently posted notices on its internal bulletin board titled "Notice on Voluntary Retirement for Technical Staff" and "Notice on Voluntary Retirement for General Staff." Eligible applicants are technical and general employees, excluding contract and dispatched workers. The application period runs from the 18th to 3 p.m. on the 22nd.
Employees who choose voluntary retirement will receive an additional severance payment on top of the legal retirement package. For technical staff, support will be provided based on monthly pay, while for general staff it will be based on annual contracted salary. The company will cover 50% of the remaining years of service until retirement, up to three years. It will also provide up to 10 million won in tuition support per child.
In the notice, the company said, "Final approval will be determined after review by a senior manager or through personnel screening," adding, "Applications may be rejected depending on the review result."
Hyundai Steel Pipe also accepted voluntary retirement applications in December last year. With another round being carried out just six months later, industry insiders say the pace of restructuring is intensifying.
This latest program is drawing more attention because it comes as Hyundai Steel Company moves to sell Hyundai Steel Pipe. The company has been under pressure from weakening steel market conditions and a sluggish construction sector, which have hurt profitability. Last year, Hyundai Steel Pipe posted sales of 861.8 billion won, down 10.5% from a year earlier. It recorded an operating loss of 23.5 billion won and a net loss of 22.1 billion won. Rising financial costs and weak pipe market conditions are cited as key reasons for the deterioration in earnings.
solidkjy@fnnews.com Gu Ja-yun, Kwon Jun-ho Reporter