Samyoung Industrial Headquarters Severance Pay and Financial Troubles

Samyoung Industrial Headquarters located in Hagye-ro, Jinyeong-eup, Gimhae-si, Gyeongsangnam-do./Samyoung Industrial

Samyoung Industrial, a building materials company founded by the late Lee Jong-hwan, honorary chairman of Samyoung Academic Group, who donated 1.7 trillion won of his life savings to a scholarship foundation, has decided to pay severance pay to all dismissed employees.

According to Samyoung Industries on the 29th, the company announced plans to pay 3.2 billion won in severance pay to 130 employees by the 30th. The original deadline for severance pay was 14 days from notification of dismissal.

This occurred before Feb. 2, when the company previously announced it would pay severance pay. According to the Samyoung Industrial Union, a company official posted on social media and via SMS last weekend: “It appears that 100% of the severance pay will be guaranteed by the end of the day. “We are working on everything, including the January salary, unpaid annual leave and severance pay. We are trying to get everything sorted by February 2.” “Please wait until then,” he informed the employees.

Seo Moo-hyun, president of the Samyoung Industrial Union, said: “The union members cannot understand that a company founded by a founder who donated over 1 trillion won is going bankrupt due to a bank debt of 1 trillion won. .6 billion won.” normalization of management must be revealed in detail,” he said.

Samyoung Industrial, founded in 1972, went into deficit in 2019 due to the deteriorating housing economy and rising raw material and gas tariffs, and has fallen into a state of complete capital erosion with liabilities exceeding assets as of 2020. As of the end of 2022, assets amounted to 20.1 billion won and liabilities stood at 24.7 billion won.

Meanwhile, President Seo said: “As a result of the union’s findings, excluding the two who submitted their letters of resignation out of 132, the number of employees who received a dismissal notice was 130, not the 140 announced by the company”.

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