China Financial Daily

KT layoffs: South Korea’s largest mobile operator KT lays off 6,000 employees
News on December 28, according to foreign media reports, South Korea’s largest mobile operator KT Monday said it would cut 5992 jobs, or about 16% of the overall number of employees, which would save 460 billion won a year for the company ( about 393 million U.S. dollars) in labor costs.

KT said the plan is aimed at empolyees who work in the company for more than 15 years and apply for early retirement. The company spokesman said the layoffs resulting from the compensation would be credited to the fourth quarter earnings, which would be expected to produce about 8,400 billion won one-time costs. Tong Yang Securities analyst Choi Nam Kon pointed out that the job cuts would improve next year’s profit of KT. KT this year, KT Freetel with the mobile phone business after the merger has said it plans to reduce the five-year period about 5,000 billion won, manpower-related costs.

Choi Nam Kon, said: “Investors should focus on next year’s profit of KT seeking to improve operational efficiency, recovery and determination.” He gave KT “buy” rating and raised its target price 10 percent to 5.3 million won, while 2010 annual profit is expected from the previous 1.8 trillion won raised to 2.1 trillion won.

KT, the latest results showed narrower, as of the end of September, the company a total of 37026 employees. KT union on December 9 require the company to develop an early retirement scheme to support the company still hopes to find after the “new opportunities” employees.

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