South Korea’s top 10 conglomerates handed out more than 2 trillion won ($1.8 billion) in severance pay last year, as they undertook restructuring measures and cut their payrolls, market data showed Monday.

A total of 97 subsidiaries established under the 10 conglomerates paid out an aggregate of 2.09 trillion won in severance pay in 2014, up 33.3 percent from the previous year, according to data released by Chaebul.com.

Hanwha Group ― which owns seven subsidiaries ― saw the greatest on-year increase in its severance payments from 2013 to 2014, at 172 percent. The group paid about 241.8 billion won to retiring employees last year.

The hike came as Hanwha Life Insurance ― faced with sluggish business conditions ― reduced its workforce by 8.7 percent― from 4,738 in 2013 to 4,327 employees in 2014.

Hyundai Heavy Industries Group ― which recorded large deficits in 2014 ― spent 99.6 percent more on severance pay last year in comparison to 2013. The payments spiked from 27.4 billion won in 2013 to 54.6 billion won in 2014.

Samsung Group spent 52 percent more on severance pay last year, handing out 846.8 billion won. The hike came as Samsung Life Insurance, Samsung Fire & Marine Insurance and other finance subsidiaries undertook restructuring measures.

LG Group saw severance payments rise from 240.9 billion to 302.3 billion won, while Hyundai Motor Group and POSCO Group saw their payments increase by 3.1 percent and 2.3 percent respectively.

Meanwhile, SK Group, Lotte Group, GS Group and Hanjin Group saw their severance payments decline from 2013 to 2014.

(jys@heraldcorp.com)