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Korea National Housing Corporation Suspected of Rehiring 18 Retired Personnel through Unwarranted Means

Korea National Housing Corporation Suspected of Rehiring 18 Retired Personnel through Unwarranted Means

Posted September. 10, 2004 21:45,   


The Korea National Housing Corporation (a.k.a. “Jugong”) has been rehiring its retired class 1, class 2 employees as research fellows at an affiliated research institute, and paying them annual salaries at an average of 76 million won per person without requiring them to perform any particular work.

According to the data that Jugong submitted to Assemblyman Lee Nak-yeon (Democratic Party) of the National Assembly’s Construction and Transportation Committee, Jugong retired 10 employees (eight class 1 personnel and two class 2 personnel) on July 31 of last year for restructuring purposes, etc., but simultaneously rehired them as contractual fellows at its Housing and Urban Research Institute. Jugong has been paying these employees annual salaries of 76 million won on average; this amount closely approaches their salaries prior to retirement, which averaged 80 million won.

Jugong again rehired three class 1 personnel and five class 2 personnel through identical channels on February 12 of this year, bringing the total number of retirement prospects rehired as contractual research fellows to 18. Although these “research fellows” have technically been employed on a contractual basis, their contracts are guaranteed until they are 58 or 57 years of age—just one year shy of the retirement age specified in the company regulations (59 for class 1 personnel, 58 for class 2)—sparking suspicions that Jugong has been using nonstandard expedients in the rehiring process.

Moreover, the class 1 and class 2 personnel rehired as research fellows have reportedly been receiving salaries without performing any particular work, not even the research their positions would normally require.

According to Assemblyman Lee, Jugong explained its unorthodox conduct by stating that the company had “recommended early retirements to employees who had been working for the company for a long time, in order to alleviate the backlog of personnel and revitalize the company structure,” but that it had to “opt for this method because such recommendations were turned down.”

Assemblyman Lee further stated, “Jugong is evading restructuring by rehiring retirement prospects as research fellows,” and added, “Handing out high salaries to employees who no longer perform any real work is a typical example of moral irresponsibility.”

Min-Hyuk Park mhpark@donga.com