[Alpha Biz= Paul Lee] Shilla Duty Free, operated by Hotel Shilla, is set to begin workforce efficiency measures as part of its cost-saving efforts.
According to retail industry sources, Shilla Duty Free instructed its group leaders on the 28th to identify employees who wish to apply for voluntary retirement.
Eligible employees for voluntary retirement are those aged 40 or older, or those who have been with the company for at least five years. If they choose immediate retirement, they will receive 1.5 times their annual salary as a severance. Alternatively, if they opt for retirement after an 18-month leave, they will receive their basic monthly salary during the leave period.
A Shilla Duty Free spokesperson explained, "In light of the challenging business environment, we have decided to offer voluntary retirement in a confidential manner as part of our management efficiency efforts."
Shilla Duty Free posted an operating loss of KRW 69.7 billion last year, reversing its profit of KRW 22.4 billion in 2023. The company also recorded an operating loss of KRW 5 billion for the first quarter of this year.
With Shilla Duty Free now accepting voluntary retirement applications, all five major duty-free companies in the industry are undergoing workforce streamlining processes. Earlier, Lotte, Shinsegae, and HDC Shilla implemented voluntary retirement programs last year, and this month, Hyundai Duty Free, a subsidiary of Hyundai Department Store Group, also launched its own voluntary retirement program.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
