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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] On the 13th, the telecommunications industry reported that KT is planning to establish two subsidiaries, KT OSP and KT P&M (tentative name), to reorganize its workforce by transferring teams responsible for network maintenance and installation services. Both companies will be fully funded by KT through cash investments.
KT OSP will be responsible for designing and constructing communication line facilities and will employ around 3,400 people. KT P&M, which will handle the design of power facilities within offices, is expected to have about 380 employees. Both subsidiaries will be 100% owned by KT.
Following a board resolution on the 15th, the companies are expected to complete their incorporation process by January 1st of next year.
For employees who do not wish to transfer to the new subsidiaries or other group companies, KT will offer a special voluntary retirement program. The severance pay will be calculated based on years of service, with rates ranging from 165% to 208.3% of the base amount. The workforce reduction through spin-offs and voluntary retirements could affect up to 5,700 employees.
A KT official commented, "No final decisions have been made, and we cannot confirm the details at this time."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
