Shinsegae Duty Free offers voluntary retirement program

(Shinsegae Duty Free)

Shinsegae Duty Free (Shinsegae DF) is offering a voluntary retirement program to its employees, the first of its kind since its inception, amid shrinking profitability.

According to sources, Shinsegae DF launched the two-week program on Friday, targeting all employees with over five years of service.

Employees with over five years will receive severance pay equivalent to 24 months’ salary, while those with over ten years will receive 36 months’ salary.

This move reflects challenging conditions in the duty-free industry and is the first such initiative since Shinsegae Duty Free’s establishment in 2015.

The company has faced sluggish performance, closing some stores and recently establishing an emergency management task force to address the situation.

In a message to employees, Shinsegae DF CEO Yoo Sin-yeol highlighted the need to respond to factors such as China’s economic slowdown, shifts in consumer trends, and intense competition.

He warned that without corrective measures, accumulated losses could threaten the company’s future.

Shinsegae DF reported an operating loss of 16.2 billion won ($11.5 million) in the third quarter of this year.