KT to cut 5,992 jobs via early retirement plan

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SEOUL, Dec. 28 (Yonhap) -- KT Corp., South Korea's biggest fixed-line telephone
and broadband Internet operator, said Monday it will cut its workforce by about
16 percent, its largest payroll-cut ever, through an early retirement program.

KT has decided to reduce 5,992 jobs through a voluntary retirement scheme after
accepting applications from employees who have worked for more than 15 years, the
company said in a statement. The decision marks the largest job cuts the company
has made, it added.
The company said the move will incur one-off costs for severance pay, which could
reduce this year's operating profit to around 900 billion won (US$769.2 million)
from an earlier estimate of 1.8 trillion won. But over the long term, the move
will help reduce labor costs by about 460 billion won annually, KT said.
KT plans to fill the void by expanding the recruitment of new entrants, hoping to
help reduce the unemployment of young people.
KT merged with its mobile affiliate KTF Co., the country's second-largest mobile
carrier, in an effort to boost its competitiveness in the saturated local telecom
market. The merged entity was launched on June 1.
ksnam@yna.co.kr
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