Semiconductor Jobs Rise, But Manufacturing Faces 'K-Shaped Polarization'

A clear trend is emerging in South Korea's job market, with employment heavily concentrated in the semiconductor industry. While memory chip giants like Samsung Electronics and SK Hynix are expanding their workforces, other manufacturing sectors are experiencing job losses, creating a 'K-shaped polarization.' This phenomenon depicts a job market where one segment is ascending, much like the upward stroke of the letter 'K', while another is declining, mirroring the downward stroke.

As of the end of last year, SK Hynix employed 34,549 people, an increase of 2,159 from the previous year. Although Samsung Electronics' Device Solutions (DS) division saw a decrease in its workforce to 78,064, the combined headcount for both companies in the semiconductor sector rose by 1,554 to 112,613 over the year. DB Hitech, a power semiconductor company, also saw its employee count grow from 2,051 to 2,221, a gain of 170.

Applications for university departments with guaranteed employment have also surged. SK Hynix revamped its recruitment brand early this year and expanded its hiring to include not only office positions but also all employee levels through a continuous recruitment system to secure talent. The Samsung Group announced last year that it would hire 60,000 new employees over the next five years. Bolstered by industry-leading performance bonuses, the admission cut-off scores for semiconductor contract departments for the 2027 academic year are projected to be on par with or exceed those for Korean medicine and pharmacy programs.

However, this localized warmth in employment has raised concerns about 'K-shaped polarization.' Last month, the number of employed individuals aged 15 and over decreased by 40,000 compared to the same month last year, marking the first decline in 17 months. The manufacturing sector, which includes the semiconductor industry, saw a reduction of 140,000 jobs, continuing a 23-month streak of decline and registering the steepest drop since February 2019.

Professor Yang Jun-seok of Economics at Catholic University diagnosed the current situation, pointing out the urgent need to secure flexibility in labor structure reforms that allows companies to hire the workers they need in a timely manner.