Hyundai Duty Free implemented voluntary retirement under the guise of workforce efficiency. This measure was taken in response to deteriorating performance at downtown duty-free shops.
According to the distribution industry on the 9th, Hyundai Duty Free announced a voluntary retirement notice on the company bulletin board on the 4th. All employees below the Director General level who joined before Dec. 31, 2021, are eligible, and the application deadline is until the 18th. Employees with more than three years of service will receive a special severance payment equivalent to 12 months of their performance salary, while those with more than five years will receive 15 months.
A representative from Hyundai Duty Free noted, "This is an inevitable choice to normalize business operations and promote future growth amid a crisis in the duty-free industry."
Hyundai Duty Free has been operating two downtown duty-free shops, including the Dongdaemun and Trade Center locations, as well as duty-free shops at Incheon International Airport Terminals 1 and 2. Last year, airport duty-free shops recorded an operating profit of 30 billion won, while downtown duty-free shops experienced a sharp decline in sales, resulting in a total loss of 28.8 billion won.
In light of this situation, Hyundai Duty Free held a board meeting on the 1st and decided to close the Dongdaemun downtown duty-free shop by July and to reduce the Trade Center shop from three floors to two. This decision is intended to address the worsening duty-free market and resolve the ongoing performance crisis that has persisted over the past few years.
Recently, the duty-free industry has been implementing voluntary retirements consecutively due to worsening market conditions. Last year, Lotte Duty Free, Shinsegae Duty Free, and HDC Shilla Duty Free also carried out voluntary retirement programs.