[News] South Korea Faces Talent Exodus as Report Reveals 35% of CXMT Engineers Are Korean

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According to The Korea Economic Daily, cited by The Liberty Times, South Korea’s semiconductor sector is grappling with a severe talent drain as Chinese companies like ChangXin Memory Technologies (CXMT) aggressively recruit engineers from major players Samsung Electronics and SK Hynix. Notably, 35% of CXMT’s engineers are reportedly South Korean, posing a significant threat to the long-term sustainability of the nation’s semiconductor industry.

Despite ongoing political and economic uncertainties, South Korea’s export performance has reached unprecedented heights. The Ministry of Trade, Industry, and Energy’s recently released 2024 Annual and December Export Trends report projects the country’s export volume to hit $683.8 billion in 2024, surpassing the previous record of $683.6 billion set in 2022. This milestone is largely driven by robust semiconductor exports, which soared 43.9% year-over-year to $141.9 billion, setting a new record.

The Liberty Times highlights that semiconductors, particularly memory chips, remain a critical driver of South Korea’s trade surplus, which reached $51.8 billion in 2024—the highest in six years. A surge in sales of high-bandwidth memory (HBM) was a key factor behind this growth. However, the thriving industry now faces mounting internal and external threats that could jeopardize its future prospects.

Globally, countries are ramping up support for their domestic chip industries. Japan, for example, has bolstered its backing of Rapidus, while Taiwan’s TSMC is rapidly expanding its footprint in Japan. China is also intensifying its efforts to nurture domestic chipmakers. In contrast, South Korea risks falling behind in strategic support.

South Korean reports cited by The Liberty Times underscore challenges such as regulatory hurdles and insufficient government backing. For instance, construction of SK Hynix’s semiconductor cluster in Yongin, initiated in 2019, has been repeatedly delayed, highlighting the urgent need for more efficient and timely government action. Moreover, the National Assembly’s failure to pass a critical semiconductor special law last year serves as a striking example.

Another pressing concern is the escalating brain drain, with Chinese companies aggressively poaching South Korean talent. At CXMT, 35% of engineers reportedly hail from South Korea. Meanwhile, countries like the U.S. are extending visa terms to attract top-tier tech talent. If South Korea fails to retain its best engineers, it risks losing its competitive edge in the global talent race.

(Photo credit: CXMT)