"Self-improvement leave, support for domestic doctoral programs, retention incentives of 30 million won."
This is one example of the incentives offered by Samsung Electronics to retain 'key personnel' who have expressed their intention to resign. The company also proposed an additional compensation of 100 million won if a separate non-compete agreement was signed. However, the employee in question declined all offers and chose to move to another company.
As SK Hynix pushes ahead with massive performance bonuses and aggressive hiring, concerns are growing over talent drain from major companies including Samsung Electronics. SK Hynix operates a system that utilizes up to 10% of its operating profit as the source for performance bonuses without any cap. Analysts estimate SK Hynix's annual operating profit this year will reach 266 trillion won. A simple calculation shows that the per-employee bonus amount exceeds 700 million won.
In particular, Samsung Electronics is more vulnerable to talent loss in the same semiconductor industry. In May, through a labor-management agreement, the Memory Division agreed to pay special performance bonuses on a scale surpassing SK Hynix to quell immediate concerns. Samsung Electronics plans to pay special performance bonuses funded by 10.5% of operating profit for its Device Solutions (DS) division.
However, depending on the allocation ratio by business unit, the gap in performance bonuses between the Foundry and System LSI divisions within the DS division and the Memory Division remains significant. Furthermore, SK Hynix's recent large-scale recruitment of new graduates and experienced hires has caused a stir both inside and outside the company. It is reported that there have been cases where current Samsung Electronics employees applied for SK Hynix's open recruitment for new hires.
Industry observers expect Samsung Electronics to more actively utilize key personnel management and special incentive systems to prevent talent drain. In particular, it is noteworthy that the court recognized the payment of special incentives as separate compensation for non-compete agreements. Whether additional consideration was provided to employees is one of the main criteria for determining the validity of a non-compete agreement.
In a ruling partially granting Samsung Electronics' application for an injunction against resignation last month, the court reasoned that "it is reasonable to view that consideration was paid for the non-compete agreement" based on grounds such as: △only about 6.7% of employees working in business units were eligible for special incentives, and △the special incentive agreement included obligations similar to those in a non-compete agreement.
An industry official explained, "While most employees sign non-compete agreements, it is not easy to apply them directly to general staff due to the freedom of occupational choice guaranteed by the Constitution." The official added, "However, if a company provides separate compensation to key personnel, there is a higher likelihood that it will be recognized as consideration for restricting employment."
Samsung Electronics' PSU (Performance-Linked Stock Compensation), introduced last October, also has the so-called 'Lock-in' effect of keeping employees with the company for an extended period. Under the PSU system, the number of shares to be paid is determined based on the stock price as of October 13, 2028.
If the current stock price is maintained based on Samsung Electronics' closing price on the 6th (235,000 won), CL3~CL4 (managers and deputy managers) could receive shares worth approximately 138 million won (600 shares). The confirmed shares will be paid out in installments over three years after 2028.
SK Hynix's large-scale recruitment of experienced hires is having a significant impact not only on Samsung Electronics but also on other major companies. In a survey conducted by the career platform Saramin, SK Hynix recently topped the list of 'most desired major companies to join,' surpassing Samsung Electronics.
An official from a non-semiconductor major company stated, "Experienced hiring is not limited to semiconductor technical personnel; employees at non-semiconductor companies are also showing great interest in SK Hynix's recruitment." The official added, "I understand that the concerns of HR departments at each company are also growing."
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