SK hynix cuts staff turnover to 1% as Samsung lags: study

A corporate research study by Leaders Index revealed a stark contrast in employee retention between South Korea’s two leading memory chipmakers amid the AI boom. SK hynix achieved a staff turnover rate of just 1% in 2024, the second-lowest among 108 large companies surveyed, while Samsung Electronics maintained a rate over 10 times higher at 10.1%, down from 12.9% in 2022. The gap stems partly from SK hynix’s focus on high-bandwidth memory, a critical component for AI processors, which generated an operating profit of 21.3 trillion won ($15.8 billion) in 2024. SK hynix’s retention strategy hinges on profit-sharing tied to operating profit, with bonuses previously capped at 1,000% of base salary. In September 2025, the company removed this cap entirely, allocating 10% of operating profit to bonuses after recording 97.15 trillion won in revenue and 47.21 trillion won in profit. This led to a 2025 payout averaging 2,964% of base salary, confirmed by news reports in February. Samsung, meanwhile, faced union unrest as 48,000 workers threatened an 18-day walkout before a government-mediated deal in late 2025. The agreement offers an uncapped special bonus for the Device Solutions division, funded by 10.5% of agreed business results, paid in stock. However, Samsung declined to provide turnover data for its chip division alone, limiting direct comparisons. The study highlights how SK hynix’s transparent profit-sharing model and AI-driven profitability have strengthened employee loyalty, while Samsung’s broader operations and slower bonus adjustments have contributed to higher turnover. A cooling job market also played a role in SK hynix’s improved retention rates.