Samsung Electronics is expected to actively utilize its 'Key Talent' program to prevent the exodus of top talent. The strategy involves offering special incentives and signing non-compete agreements to deter high-performing employees from joining competitors.
According to the electronics industry and legal circles on the 6th, Samsung Electronics provided special incentives to 6.7% of its memory division staff last year. The company operates an internal talent management system called 'Key Talent,' under which eligible individuals receive special incentives and other benefits.
The scale of special incentives varies by individual. Reports indicate amounts range from as low as 10 million won to over 100 million won per person. In March this year, Samsung Electronics distributed approximately 40 billion won worth of its own shares to 9,663 employees for the purpose of retaining top talent and boosting motivation. This represents about 7% of the total workforce, with an average payout of around 40 million won per person.
Industry analysts suggest that Samsung Electronics has no choice but to leverage its special incentive program amid concerns over talent drain to competitors like SK Hynix. The arrangement typically involves signing non-compete agreements alongside the payment of special incentives. In fact, among employees, there are reports that the number of individuals designated as 'Key Talent' in the semiconductor (DS) division has increased compared to before.
Jeon Young-hyun, Executive Vice President and Head of Samsung Electronics' DS Division, emphasized at the regular shareholders' meeting held last March: "We are enhancing wage competitiveness by providing individual incentives to top talent and offering additional rewards based on achievement levels for key projects." He added, "We will attract top talent and prevent the departure of key personnel."
In fact, last month, a court halted an employee's planned move from Samsung Electronics' memory division NAND flash design team to SK Hynix. The court partially granted Samsung Electronics' application for a preliminary injunction against two employees, Mr. A and Ms. B, ruling that they must not be employed by SK Hynix or its affiliates for one year and six months after leaving the company.
The court cited as primary grounds that NAND flash design constitutes a core national technology and that both employees were aware of key design details. Additionally, the court considered that Samsung Electronics had separately managed these individuals as 'Key Talent.' They had signed agreements with the company to receive special incentives of 30 million won and 12 million won respectively over two years last year.
The special incentive agreement also included a mandatory clause restricting employment at competitor firms. Samsung Electronics designates major competitors, including SK Hynix and Micron, as non-compete targets. The court viewed the special incentives as being paid in exchange for compliance with the non-compete agreement.
An industry source stated, "SK Hynix is offering performance bonuses worth hundreds of millions of won, raising concerns about talent drain from Samsung Electronics," and added, "Expanding the special incentive program can serve as one measure to counteract talent loss."
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