Korean companies hire more in H1 despite weak economy

A signboard of Samsung Electronics Co. [Photo by Yonhap]

Large companies in South Korea hired nearly 10,000 new employees in the first six months of this year, which comes despite the severe economic downturn.

According to corporate data research institute CEO Score on Wednesday, net employment by 475 out of the country’s top 500 companies by sales increased by 9,314 in the first half of this year from the end of last year. The 25 companies that underwent mergers and spinoffs were excluded.

Net employment is the number of people who newly gained eligibility for the National Pension Service minus those who lost their eligibility, indicating a net increase or decrease in jobs.

The survey showed that 146,970 people were eligible for national pension benefits at the top 500 companies in the first half of this year, while 137,656 became ineligible.

While the number of people who lost national pension benefits was slightly down from 152,232 in the first half of last year, the number of those who gained eligibility was significantly lower than 164,877 in the first half of last year, resulting in a net employment increase of under 10,000.

Net employment increased in 18 out of 21 industrial sectors, including shipbuilding, machinery and equipment.

The increase was the largest for shipbuilding, machinery, and equipment at 2,142, followed by services at 2,132. Food and beverages also saw net employment growth at 1,279, petrochemicals at 1,206, public enterprises at 1,151, and construction and building materials at 1,017.

On the other hand, the information technology and electronics sector saw the largest decline of 974 in net employment, followed by retail at 756 and securities at 301.

By company, Samsung Electronics Co. had the largest increase in net employment at 2,275 among all companies surveyed. In the first half of the year, the company acquired 5,839 national pensioners and lost 3,564.

The net employment growth was also high at Korea Railroad Corp. with 1,419 and Hyundai Motor Co. with 1,057, followed by CJ Olive Young Corp. at 859, SCK Corp. at 829, Samgu I&C Co. at 751, LG Energy Solution Ltd. at 749, Samsung C&T Corp. at 690, NongHyup Bank at 468, and POSCO Future M Co. at 456.

Meanwhile, LG Innotek Co. had the largest decline in net employment at 2,665 in the first half of the year.

The fall is associated with the sector’s employment trend where temporary workers are hired in great numbers in the second half when customer demand grows and many contracts terminate in the first half of the following year.

LG Display Co. also saw its net employment fall by 10,201, Emart Inc. by 773, Korea Expressway Corp. by 589, Kia Corp. by 453, KB Kookmin Bank by 432, Lotte Shopping Co. by 425, Homeplus Co. by 394, Korea Racing Authority by 384, and Kakao Entertainment Corp. by 383.