SK ups retirement program severance to over $225,000

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SK ups retirement program severance to over $225,000

Published: 27 Sep. 2024, 15:07 Updated: 27 Sep. 2024, 15:09

LEE JAE-LIM
lee.jaelim@joongang.co.kr

SKT Tower located in Jung District, central Seoul [SK TELECOM]

SK Telecom, Korea’s largest mobile carrier, has raised severance pay for its retirement program, offering up to 300 million won ($227,554) in a bid to encourage early resignations from eligible employees.

The maximum severance pay rose 500 percent to 300 million won for this year.

The program, instituted since 2019 under the title “Next Career,” initially offered two years of paid leave of absence and if the employee wished to retire, provided severance pay up to 50 million won.

Eligibility extends to employees who are 50 years or older, or those who have been continuously employed for and above 25 years.

The average annual salary for SK Telecom employees is 150 million won, making it the highest among the nation’s three major mobile carriers and placing it within the top 10 salary figures for domestic companies.

The increase in severance pay is a bid to increase the appeal of the program for those approaching retirement.

“[The change] has a different intent compared to typical voluntary resignations or early retirements aimed at a workforce reduction,” SK Telecom spokesperson told the Korea JoongAng Daily.

SK Telecom, an affiliate of the conglomerate SK, is aligning with the company’s broader strategy to invest in AI, with plans to allocate 82 trillion won to the sector by 2028.

The company invested $20 million in Lambda, a U.S. GPU cloud provider, $10 million in AI search engine Perplexity and $200 million in enterprise technology company Smart Global Holdings this year.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]