[단독] Kangwon Land restructuring 2,000 people unpaid, 200 horsemen

Due to the prolonged COVID-19 outbreak, a cold wave of jobs at the beginning of the year is hitting public institutions, the symbol of iron rice bowls. Although the Moon Jae-in administration is devoted to increasing jobs in public institutions, on one side, there is an ironic situation in which, in the face of a management crisis, the increase in employment is reduced again.

According to Kangwon Land on the 20th, it was confirmed that from the 29th of last year to the end of January, Kangwon Land will be suspending unpaid business for about 1,900 employees. Kangwon Land’s board of directors held a board meeting on the 18th and decided to pay 70% of the basic salary as a living support amount to those eligible for unpaid leave. After the 31st, it was decided to decide whether to extend such support by holding its own council every two weeks while watching the coronavirus quarantine situation.

Kangwon Land was virtually paralyzed with 230 days of closure and 82 days of partial business until this day after the casino, Kangwon Land’s flagship business, entered the closure from February 23 of last year. Normal operation is only 50 days. Accordingly, Kangwon Land has devised measures to overcome the crisis, such as reducing the expenditure budget by 38% (470 billion won) in 2020 from September last year and operating an emergency management system. However, it is estimated that it recorded an operating loss of 429.5 billion won last year despite such a bargaining system.

Kangwon Land explained, “It is unclear whether it will stabilize as the spread of Corona 19 is blocked. Given the current trend, it is unclear when it will be able to normalize.” Kangwon Land decided to discuss ways to support unpaid closure through the board of directors again if the closure continues after March.

The cold wave of Corona 19 also struck a public leisure company, Horse Racing. The Korean Horse Racing Association reduced 198 people from last year. The number of horse racing support jobs decreased by 197 to 4958, and the number of commissioned employees decreased by 12 to 83. However, to prepare emergency management countermeasures, 11 job support positions were increased.

As the horse races for the general audience were completely suspended for eight months from the end of February to the end of October, the horse race’s main source of income was cut off. Accordingly, it is estimated that last year, the horse society recorded the worst operating loss of about 460 billion won. Except during the Korean War, this is the first time that the horse society, established in 1949, recorded a deficit.

As a result, since September of last year, when it started emergency management, the Horse Association has been taking unpaid holidays one day a week and paying 50% of the subsidy. The horse race, which started to tighten the belt, decided to organize a 163 billion won this year, a 30% reduction in horse racing prize money.

Through such emergency management, the Horse Association decided to reduce the operating budget by 15% this year, reducing a total of 55.5 billion won. However, even with such austerity, it is not expected to be easy to overcome. According to the business plan in 2021, the Horse Association predicted that the total revenue this year will be KRW 3,734 trillion, but the total cost will be KRW 3,327.3 billion, resulting in a deficit of KRW 253.9 billion.

[오찬종 기자]
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