SK Innovation, South Korea’s top oil refiner, has announced a voluntary retirement scheme for its employees for the first time in 18 years since the 1997 Asian financial crisis.

The company made the announcement Wednesday via its intranet, saying that the company is receiving applications for those who want to voluntarily leave the company.

Any employee aged over 44 who has worked for more than five years, or aged under 44 who has worked more than 10 years, can apply.

The VRS employees will receive a severance pay worth five years salary, support for switching jobs or launching a new business as well as 50 million won ($45,700) for family support.

“The process will take place entirely on a voluntary basis and should not be regarded as a forced restructuring measure,” an SK Innovation official said, adding that the recent move is part of the company’s broader efforts to “lighten up” and “strengthen” itself as it seeks new business opportunities amid burgeoning competition in the oil industry.

Hit by plunging oil prices and low refining margins, SK Innovation in 2014 recorded a deficit for the first time in 37 years with an operating loss of roughly 231.2 billion won, alongside GS Caltex and S-Oil which also saw their largest operating losses to date last year.

(jys@heraldcorp.com)