[Samsung on the Rise Again] Hiring 40,000 Directly Over 3 Years... Creating an Ecosystem with SMEs

[Asia Economy Reporter Jeong Hyunjin] Samsung will directly hire 40,000 people over the next three years as part of its future preparation efforts following COVID-19. The company will maintain its regular recruitment system to ensure employment stability, and through large-scale domestic investments, it is expected to create employment effects reaching 560,000 jobs. Samsung will also focus on fostering the domestic industrial ecosystem by expanding support for small and medium-sized enterprises' (SMEs) fundamental technology research and development (R&D) and upgrading manufacturing capabilities through smart factory programs.

Samsung Electronics and its major affiliates announced on the 24th a plan to create employment opportunities for future generations. Samsung explained, "As a responsible company, we aim to pioneer Samsung's future by pursuing future values such as youth employment and coexistence with SMEs, while contributing to solving Korea's challenges and advancing the nation."

Samsung Electronics and its key affiliates have decided to directly hire 40,000 people over the next three years. The usual hiring plan anticipated hiring 30,000 people over the next three years, but Samsung will expand employment focused on advanced industries. In particular, unlike companies such as Hyundai Motor, SK, LG, and Hanwha that recently abolished regular recruitment and switched to on-demand hiring, Samsung will maintain the regular recruitment system to seek employment stability.

A Samsung official said, "We plan to continue maintaining regular recruitment to ensure stability and predictability in the domestic hiring market," adding, "Considering that large-scale domestic investments by Samsung over the next three years will induce employment effects of 560,000 jobs, we expect this to play a significant role in building a social safety net."

Alongside this, Samsung will expand the Youth SW Academy (SSAFY), which has been ongoing, to a nationwide scale and increase the program size. Samsung has established Youth SW Academy campuses in Seoul/Capital area, Central region (Daejeon), Jeolla region (Gwangju), Gyeongsang region (Gumi), and added the Southeast region (Busan). Starting with 500 trainees in 2019, the Youth SW Academy plans to gradually increase the number of trainees to 1,800 by 2025, nurturing 10,000 trainees over seven years.

At the same time, Samsung will apply the C-Lab Inside program for nurturing in-house ventures not only within the existing set (CE, IM) divisions of Samsung Electronics but also in the semiconductor (DS) division. The C-Lab Outside program, which supports external startup growth, will also provide opportunities to prospective entrepreneurs in addition to early-stage startups.

Samsung will also focus on creating an ecosystem where large corporations and SMEs can grow together. To this end, it will expand support for basic science and fundamental technology R&D and strengthen industry-academia cooperation. Samsung plans to increase support from 300 billion KRW over the past three years to 350 billion KRW over the next three years. Additionally, it will support industry-academia projects and doctoral-level talent development in semiconductor and display fields, and establish contract departments and joint majors in semiconductor and communication fields at major universities to build infrastructure leading next-generation semiconductor and communication technologies.

Furthermore, Samsung will activate the smart factory program to strengthen the manufacturing capabilities of domestic SMEs. Moving beyond basic-level support, the program aims to help SMEs enhance and solidify their manufacturing capabilities. While previous support focused on manufacturing site innovation and environmental safety improvements, the new plan includes building automation in factory operation systems, production, and logistics to develop actual manufacturing capabilities.

Since 2015 until last year, Samsung supported about 2,500 companies with 55 billion KRW in smart factory projects and has operated separate support programs worth 2 billion KRW annually for market development, workforce training, and new technology support to help companies achieve self-sustainability.

Additionally, Samsung will continue operating win-win funds and liquidity funds to support partner companies' stabilization, expanding safety and productivity incentives for excellent partners to 240 billion KRW over the next three years. The public-private R&D fund for localization of materials, parts, and equipment and next-generation advanced technology support will be increased from the current 20 billion KRW to 30 billion KRW.

A Samsung official stated, "This is to fulfill the corporate role in addressing the challenges our economy and society will face in the future, preparing for the major transformations in industry, international order, and social structure expected after COVID-19," adding, "Along with expanding direct employment, we will provide educational opportunities and support startups to find solutions to employment issues. We will also pursue inclusive innovation and win-win measures to reduce the gap between large corporations and SMEs."

Samsung's announcement of this investment and employment plan came 11 days after the parole of Samsung Electronics Vice Chairman Lee Jae-yong on the 13th. Upon release, Lee said, "I apologize for causing great concern to the public," and added, "I have heard the worries, criticisms, concerns, and great expectations directed at me. I will work hard." On the same day, President Moon Jae-in commented on the parole decision, saying, "In the midst of a severe crisis, especially expecting roles in the semiconductor and vaccine sectors, many citizens requested parole," and described it as "a choice for national interest."

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