Shilla Duty Free will implement a voluntary retirement program. Recently, as the performance of the duty-free industry has worsened across the board, restructuring movements are spreading.
According to the industry on the 28th, Shilla Duty Free will begin accepting applications for voluntary retirement starting this week. A representative from Hotel Shilla noted, "The voluntary retirement procedure will be implemented starting this week. Detailed information will be kept confidential."
Hotel Shilla is reported to have announced details regarding voluntary retirement at some locations that day. Employees who are over 40 years old or have more than five years of service are eligible. The announcement reportedly includes that an amount 1.5 times the annual salary will be paid immediately upon resignation, and if they resign after an 18-month leave, the base salary will be paid.
Hotel Shilla recorded an operating loss of 5.184 billion won last year, marking a return to deficit. Although the hotel sector achieved its best performance ever, the duty-free business incurred significant losses.
Recently, the duty-free industry has been implementing voluntary retirements one after another as the business environment deteriorates. Last year, Lotte Duty Free, Shinsegae Duty Free, and HDC Shilla Duty Free implemented voluntary retirement programs. Hyundai Duty Free also posted a notice about voluntary retirement on the company bulletin board earlier this month.