The loss of employees came through voluntary retirement amid an atmosphere of economic uncertainty Seoul is currently experiencing.
The South Korean Ministry of Economy and Finance lowered the workforce at state enterprises by over 10,700 employees from January to March amid economic uncertainty, according to media reports citing the department on Thursday.
State-owned enterprises also sold obsolete assets worth 1.4 trillion won ($1 billion) over the same time, accounting for 20.6% of the government’s aim to get rid of 6.8 trillion won in assets by the end of the year, according to South Korean news agency Yonhap.
According to the data, state enterprises restructured their offices to lease vacant space, saving the government 4.7 billion won, while South Korean public enterprises expect to recruit 22,000 people this year.
South Korean Finance Minister Choo Kyung-ho stated in December 2022 that the country’s government planned to resolve economic challenges by implementing a new growth strategy since it anticipated financial difficulties in 2023. The nation announced intentions to cut 4% of public-sector positions by 2025.
Officials in Seoul declared in October that the country was in the midst of a complete economic crisis, with fears about a faltering economy lingering despite rising costs due to high inflation. As a countermeasure, they intended to provide 18.2 billion won in food discount vouchers by the end of 2022 to assist citizens in dealing with inflation.
This article was originally published by Al Mayadeen English.