“Earning Hundreds of Millions of Won Just by Commanding the Reserve Forces”… Why Samsung and SK Became the ‘Dream Company Commanders’
Commanders of the Workplace Reserve Forces Also Appointed from Among Samsung and SK Employees
Performance-based bonuses and benefits are provided on the same terms as for regular employees, in accordance with company policy
Amid the semiconductor boom, the CEO of Dongdae may receive compensation in the hundreds of millions of won
"It’s hard to make an issue of it… but dissatisfaction over fairness is bound to grow"
[Edaily Reporter JAEMIN SONG ] They do not design semiconductors or manufacture wafers. In peacetime, they manage employee reservists, draw up training plans, and prepare for mobilization in the event of an emergency. However, the story is different when their workplace is a semiconductor facility operated by SamsungElectronics or SK hynix. Since workplace reserve force commanders are also employees of these companies, they can share in the fruits of the semiconductor boom. This is the paradox of performance-based pay, where “where you work” determines your compensation more than “what you do.” Reserve forces conducting simulated live-fire training. (Photo = Yonhap News) According to industry sources on the 26th, major companies such as SamsungElectronics and SK hynix operate workplace reserve forces in accordance with relevant laws and regulations. Commanders are selected through the Ministry of National Defense’s selection exam for reserve force management personnel, which includes document screening, physical fitness tests, and interviews.
The announcement in February of this year included a position for the commander of the 3rd Company, 2nd Battalion, of SamsungElectronics’ Giheung Brigade. Last year, vacancies also arose for a company commander in SamsungElectronics’ Giheung Brigade and a battalion commander in a SK hynix regiment. Applicants for company commander positions are primarily retired lieutenant colonels, while those for battalion commander positions are retired colonels.
Although they undergo military vetting, once appointed, they become employees of the respective companies. The companies pay their salaries and apply their internal welfare and compensation policies. During peacetime, they manage the organization and training of reserve forces and develop mobilization plans for times of war.
A military official stated, “Commanders of corporate reserve forces at major conglomerates typically receive compensation and benefits equivalent to those of a department head, making these positions highly sought after by retired officers,” adding, “When positions open at SamsungElectronics or SK hynix, there is a massive influx of applicants.” This is one of the few avenues through which individuals can leverage their military experience to join a major corporation.
Recently, the “semiconductor performance bonus” has added another layer of appeal. Based on the tentative agreement between SamsungElectronics’ management and labor union, it is estimated that employees in the Memory Business Division could receive a total of around 600 million won early next year, combining the Special Management Performance Bonus and the Excess Profit Incentive (OPI). SK hynix is also projected to pay performance bonuses exceeding 600 million won per employee if its operating profit surpasses 200 trillion won this year.
Since the commander of the in-house reserve force is also eligible for performance bonuses under company regulations, he is expected to receive compensation in the hundreds of millions of won. However, neither company has disclosed individual job titles, annual salaries, or specific bonus amounts.
(Graphic by Reporter Kim Il-hwan) On anonymous online communities for office workers, a saying once circulated that “even if you just feed the ducks, you’ll get a performance bonus”—implying that even facility management staff at SamsungElectronics’ Giheung campus were receiving massive performance bonuses. This was not meant to suggest that certain jobs were unnecessary, but rather a satirical expression criticizing a system where compensation is determined more by which business unit an employee belongs to than by their actual job duties or contributions.
The recurrence of such self-deprecating remarks stems from the fact that, as performance bonuses have swelled to astronomical levels due to the semiconductor boom, the compensation gap based on department affiliation has widened to an unprecedented degree. Support staff in thriving business units can receive substantial performance bonuses, but even engineers who directly design semiconductors see their compensation significantly reduced if they belong to a loss-making division.
As compensation is determined more by the business unit to which an employee belongs than by individual contribution, a sense of relative deprivation and “labor-labor conflict” are growing within SamsungElectronics. Some analysts suggest that the performance bonus gap served as a trigger for the recent trend of non-memory personnel moving to the Memory Business Division or to competitors.
An industry insider stated, “Since support staff are essential to the company’s operations, it’s difficult to take issue with the payment of performance bonuses per se,” but added, “When compensation reaches hundreds of millions of won, backlash over the disparity in contributions across job roles and equity between business divisions is bound to grow.”
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