- March 9, 2009
Chairman Park and Other Executives Agree to Cut Salaries
To participate in the government's movement to streamline governmental organizations and to promote corporate efficiency, KDIC Chairman Park and other executives have agreed to accept 5% salary cuts until year-end. This comes in the wake of a 20% cut in the salaries of Chairman Park and other executives, earlier in the year. With the funds procured in this way, the KDIC will be hiring 25 new interns this month, and plans to continue to participate in the job-sharing movement in the second half this year. The labor union also agreed to cooperate with the management team to tide over the unemployment hardship by participating in the job-sharing campaign.
New interns will be hired for 8 months after which their intern contracts will end. New junior staff will be appointed on a salary of 2 million won per month - this is a 30% reduction on the salaries of employees who were hired the previous year. After they have been permanently appointed, their salaries will be increased, but it will still be 25% lower than that of employees who started working at the KDIC prior to 2008.
Another cost-saving was brought about by the 15% downsizing of the KDIC through the closure of the YoungNam Branch as of Feb. 28, 2009. In addition, the KDIC plans to further save costs by reducing its workforce by 11.2 percent and cutting operating expenses with more than 10 percent.
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