Samsung Electronics Likely Hired 15,000 Last Year... 90% of Group's 16,000 Target

Estimated Resignation Rate Applied: Only Samsung Electronics at 15,000
Lee Jae-yong "I Will Risk My Life" Group's New Hiring Target Similar
Employees Also Increasing at Other Major Companies Like SK and Hyundai Kia

The number of Samsung Electronics employees increased by 7,919 last year. The estimated number of new hires is about 15,000. Samsung Electronics is responsible for more than 90% of Samsung Group's annual employment target of 16,000, which Chairman Lee Jae-yong pledged to "do with his life on the line."

According to Samsung Electronics' business report, the number of domestic employees at the end of last year was 121,404. This is an increase of 7,919 (7%) from 113,485 at the end of 2021.

At the Korea-Japan Business Roundtable held on the 17th at the Tokyo Keidanren (Japan Business Federation) Hall, Shin Dong-bin, Chairman of Lotte Group (second from the left), Koo Kwang-mo, Chairman of LG Group, Chung Eui-sun, Chairman of Hyundai Motor Group, Chey Tae-won, Chairman of SK Group, and Lee Jae-yong, Chairman of Samsung Electronics, are seen applauding.
[Photo by Yonhap News]

Although not as much as Samsung Electronics, the number of employees at other major companies also generally increased. SK Hynix increased by 1,809 (6%), Hyundai Motor by 707 (1%), and Kia by 346 (1%). On the other hand, LG Electronics decreased by 1,854 (-5.1%) and POSCO (steel) by 126 (-0.7%). In the case of POSCO, considering that POSCO Holdings, after last year's physical division, increased new employees by 220, the level is virtually similar to 2021. A POSCO official said, "(The 220 new employees at POSCO Holdings last year) were mostly personnel who moved from POSCO."

The increase in employees is calculated by subtracting the number of retirees from the number of new hires. According to Incruit, a job portal site, based on National Pension Service public statistics, Samsung Electronics' turnover rate for the recent 12 months (December 2021 to November last year) is 5.4%. Applying this to the year-end employee count of 121,404, the estimated number of retirees is 7,000. Adding the estimated retirees of 7,000 to the employee increase of 7,919 results in an estimated 14,919 new hires. Samsung Group did not disclose specific hiring numbers but reportedly hired about 7,000 in the first half of last year.

What is clear is that companies increased hiring despite difficult conditions. Even amid the simultaneous rise in exchange rates, interest rates, and prices due to the Russia-Ukraine war last year, employment increased. At the end of May last year, Samsung Electronics Chairman Lee Jae-yong announced plans to hire 80,000 over five years from 2022 to 2026; SK Chairman Chey Tae-won and LG Chairman Koo Kwang-mo announced plans to hire 50,000; and POSCO Chairman Choi Jeong-woo announced plans to hire 25,000.

In the case of Samsung Electronics, which saw the largest increase in employees, the estimated number of new hires accounts for 93.8% of last year's group-wide target of 16,000 annually. The one-year employee increase at Samsung Electronics accounts for 38.7% of the total increase of 20,442 across 14 Samsung affiliates.

Most affiliates, including Samsung Electronics, steadily increased hiring. Samsung Electronics' employees at the end of last year increased by 18,393 (an average of 4,599 per year) compared to 103,011 in 2018. During the same period, Samsung Biologics increased by an average of 554 per year, and Samsung SDI by an average of 386 per year. Of course, some places saw decreases. Samsung Heavy Industries decreased by an average of 335 per year, and Samsung SDS by an average of 271 per year. A Samsung Electronics official said, "Under the management philosophy of 'Talent First,' Samsung maintained the new employee recruitment system even in difficult situations to provide fair opportunities and hope for the future to young people."

SK Group also hired about 10,000 new employees last year and is expected to maintain a similar level of hiring this year. SK Innovation's eight subsidiaries announced they will hire triple-digit numbers of new employees in the first half of this year. LG Group is also continuously replenishing personnel as promised to hire an additional average of 10,000 annually over five years last year. However, due to a somewhat high turnover rate of 17.5% last year, the total number of employees decreased by nearly 2,000. The estimated number of new hires at LG Electronics last year was 4,000, while retirees numbered 6,000.

Kim Kyung-jun, CEO Score CEO, said, "Companies pledged to increase employment in line with U.S. President Joe Biden's visit to Korea and the launch of the Yoon Seok-youl administration, and with ongoing discussions about extending retirement age, employment increased despite poor performance," but added, "It should also be seen that due to very strict dismissal conditions, there was a limitation in timely workforce adjustments."