“Told to Apply as a New Graduate Without Experience”…Samsung Employees Frustrated as Path to SK hynix Is Blocked

Non-Compete Injunction Hinders Career Moves for Design Staff

Internal Transfers Cut Off, Non-Memory Unit Faces Surging Discontent

"You applied for an experienced position, right? Sorry, but we can't hire you. If you’re really determined to join us, please reapply for an entry-level position."

Recently, rumors have been circulating among semiconductor design staff in Samsung Electronics' Device Solutions (DS) division that they received such a response after applying to SK hynix’s experienced hires program. While these stories are mostly unsubstantiated, there are even self-deprecating remarks like, "I'd rather give up my career and start as an entry-level employee if that's what it takes." After a recent court ruling practically blocked job changes to rival companies, such sentiments seem to reflect the growing dissatisfaction among non-memory division employees, who feel relatively deprived due to disparities in performance bonuses.

Yonhap News Agency

Samsung Headquarters. Photo by The Asia Business Daily.

This controversy began with a court ruling involving personnel who had been in charge of key NAND flash design at Samsung Electronics' Memory Division for over ten years. After resigning in October of last year, they joined SK hynix this February. Last month, the 31st Civil Division of Suwon District Court (Presiding Judge Shin Woo-jung) partially accepted Samsung Electronics’ request for an injunction to prevent these employees from working at their competitor.

The court ruled that these individuals must not seek employment with, or provide services to, SK hynix and its affiliates until April 30, 2027—one year and six months after their resignation. The decision recognized that NAND flash design constitutes a national core technology and that Samsung Electronics had classified and managed these employees as key personnel.

Following the ruling, there was an expectation that key design personnel would face barriers to switching to rival companies, and now this has materialized. An employee from the DS division of Samsung Electronics remarked, "Some staff outside of the design roles have been able to switch jobs, but for design engineers, the restrictions have resulted in significant frustration."

The uncertainty surrounding even internal job transfers is also heightening employee frustration. The job posting system—which allows workers from non-memory segments such as System LSI and Foundry to move to the Memory Division—has been completely suspended since the first half of last year. Even then, a mass shift occurred as non-memory employees flocked to the memory segment simply due to differences in Target Achievement Incentive (TAI), rather than performance-based Over Profit Incentives (OPI). However, the compensation gap between business units has widened further with the recent introduction of a Special Management Performance Bonus. It is believed that, to prevent the mass departure of key non-memory personnel, the internal transfer process has remained closed for fear that reopening it would accelerate such an exodus.

This content was produced with the assistance of AI translation services.