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Hyundai Department Store to compensate employees affected by fire

Published: 05 Oct. 2022, 16:19

A sign prohibits people from entering the parking lot of Hyundai Premium Outlet's Daejeon branch on Monday. The mall hasn't been able to open since the fire on Sept. 26. [SHIN JIN-HO]

Hyundai Department Store will compensate employees affected by a fire that broke out at the Hyundai Premium Outlet's Daejeon branch.

Managers of brands with stores at the Daejeon branch will receive 3.5 million won ($2,480) and salespersons will receive 2.5 million won, as they have been unable to do business due to the mall closing since the fire on Sept. 26.

Seven people died and one was injured in the fire. The mall has remained shut since, due to on-site fire inspections prohibiting the entry of employees and customers.

There are 263 brands with stores at Hyundai Premium Outlet's Daejeon branch. The company says around 1,000 employees will receive the compensation.

Workers contracted for cleaning, maintenance and security will receive their full salary until the mall reopens.

Hyundai Department Store says it will also pay compensation for goods destroyed in the fire, but specific plans have not been made as the total amount of damage has still not been estimated.

The company will also provide interest-free loans to people working at the Daejeon branch.

“We feel a strong sense of responsibility for the fire at the Daejeon branch, and are planning to offer various compensation plans,” said a spokesperson for Hyundai Department Store. “We wish to offer our apologies to everyone affected by the accident.”

The company said it is in talks with the bereaved families to finalize compensation plans, and has been paying all funeral expenses.

The Daejeon branch has been closed for over a week, and Hyundai Department Store is expected to have lost 8.48 billion won in sales considering the branch earned sales of 89.3 billion won in 2021.

Losses are expected to increase as Daejeon Metropolitan Police said on Sept. 26 that the results of the fire inspection could come in two weeks at the earliest, but could take as long as a month.

BY LEE TAE-HEE [[email protected]]