news/cms/202410/16/news-p.v1.20241016.4daaadf41d274d0888eb75f8b6c47a51_R.jpg" data-width="2835" data-height="1743" /> Enlarge photo Yoo Young-sang, President of SK Telecom. [사진 = SK텔레콤]
Mobile communication companies are beginning to improve their structure through personnel and organizational reorganization. It is analyzed that cutting-edge information and communication technology (ICT), which requires enormous funds, has been selected as a strategy to overcome the slowdown in the growth of the telecommunications business, while focusing on investment in artificial intelligence (AI) infrastructure.
According to the telecommunications industry on the 16th, SK Telecom revamped its retirement program ‘Next Career’ for executives and employees nearing retirement age at the end of last month. The incentive money paid to program participants was significantly increased from 50 million won to 300 million won.
SK Telecom explained that it is a welfare program that helps prepare for life after retirement, established in 2019. The position is that the nature of this is different from a general workforce reduction because only employees with more than 25 years of service and over 50 years of age can participate.
However, there are concerns among members that this is a signal for restructuring. It is argued that this is not unrelated to SK Group’s emergency management declaration. As of the end of last year, the average annual salary of SK Telecom employees was 152 million won, the highest among mobile carriers. The starting salary is also 60 million won. The interpretation is that the incentive money was increased to encourage leave of absence and retirement.
![Kim Young-seop, President of KT. [사진 = KT]](https://i0.wp.com/wimg.mk.co.kr/news/cms/202410/16/news-p.v1.20241016.f0c1d1f24d2c43ff8ae6cb6e23301b14_P1.jpg?w=900&ssl=1)
news/cms/202410/16/news-p.v1.20241016.f0c1d1f24d2c43ff8ae6cb6e23301b14_R.jpg" data-width="2835" data-height="1890" /> Enlarge photo Kim Young-seop, President of KT. [사진 = KT]
KT also decided to establish a subsidiary and reassign communications network operation and management personnel. We plan to implement voluntary retirement in cases where employees do not wish to move to a subsidiary. It is reported that more than 3,700 people will be transferred to subsidiaries. As of the end of June, KT had 19,370 employees, the largest among mobile carriers.
KT plans to pay only 50-70% of the existing basic salary to those who are transferred. The difference from the existing basic salary is settled as a lump sum, reflecting the remaining retirement age. However, considering the possibility of salary increase and employment stability, it may be a disadvantageous condition for workers.
It is highly likely that LG U+ will also agree to downsizing. LG U+ has not yet announced an official reorganization plan, but has emphasized cost reduction since last year. Last February, the offline sales staff was reduced. In fact, it is no different from austerity management.
Experts view this as an inevitable pain that mobile carriers will experience in the process of riding the trend of the times to break away from the already saturated telecommunications business and focus on the AICT business. They all agreed that a huge amount of money was needed to seize new service opportunities for the company’s survival.
In fact, KT President Kim Young-seop said at the general shareholders’ meeting last March, “Will there be innovation without restructuring?” and “We will not carry out artificial large-scale restructuring, but we will continue normal and reasonable restructuring in accordance with the natural order.”
![KT labor union executives are protesting against organizational reorganization in front of the KT headquarters in Gwanghwamun, Seoul on the afternoon of the 16th. [이가람 기자]](https://i0.wp.com/wimg.mk.co.kr/news/cms/202410/16/news-p.v1.20241016.1c7cef598bd542d38b5373a2f58d48d1_P1.png?w=900&ssl=1)
news/cms/202410/16/news-p.v1.20241016.1c7cef598bd542d38b5373a2f58d48d1_R.png" data-width="1000" data-height="563" /> Enlarge photo KT labor union executives are protesting against organizational reorganization in front of the KT headquarters in Gwanghwamun, Seoul on the afternoon of the 16th. [이가람 기자]
However, it is not easy to quell internal dissatisfaction among those who have worked for the company for a long time. On this day, KT labor union executives held a resolution meeting in front of the headquarters in Gwanghwamun, Seoul to oppose the reorganization. It is the first time in 10 years that the KT union has taken large-scale collective action.
The union is demanding the plan be withdrawn. If it is not implemented, we plan to demand sufficient compensation for those subject to organizational transfers. Union members hung up banners with phrases such as “Oppose unilateral reorganization,” “No company without employees,” and “Stop reorganization that shakes the foundation of the organization.” If negotiations cannot be reached, a strike is being considered.
Kim Bae-jeong, head of KT’s union organization and planning department, said, “It is absolutely unacceptable that a company that made a surplus of 1.2 trillion won in operating profit last year would notify the union of such a personnel reorganization plan.” It’s sticking out. “We will definitely stop it,” he emphasized.
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