South Korea’s Hyundai Steel Co., a steel-making unit under the country’s second largest conglomerate Hyundai Motor Group, has been accepting early retirement application for the first time in its corporate history to save cost amidst protracted slump in global steel demand.

Hyundai Steel has invited voluntary retirement for office workers aged 53 or older since Nov. 25, according to industry sources on Monday. The company will receive applications until the end of this month but has not set a specific target in payroll cut.

It is the first time for the company to introduce early retirement program since its inception in 1953, reflecting the deepening woes for the country’s steelmakers against slowed global economy and competition from Chinese rivals.

Its revenue took a toll due to sales drop at Hyundai Motor and Kia Motors, its primary customer for steel plate for vehicles.

Hyundai Steel recorded 34.1 billion won in operating profit in the third quarter ended September this year, which plunged 85.3 percent from the previous quarter and 66.6 percent from a year-ago period. It incurred a net loss of 65.8 billion won in the third quarter.

An employee applying for redundancy will receive three years worth base salary, a bonus equivalent to 250 percent of the base salary, and one-off compensation of 2.5 million won ($2,100). Also, the company will give 10 million won as an educational assistance per one child.

By Pulse

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