Fear of brain drain haunts Korean firms

Ex-Samsung Electronics President Chang Won-kie recruited to China's ESWIN

By Kim Hyun-bin

Korean conglomerates are facing increasing pressure to retain their workers and protect key technologies as Chinese companies increase efforts to poach Korean talent to secure crucial information, especially in the electronics sector.

Chinese firms have been known to recruit key personnel from local electronics powerhouses such as Samsung and LG, but this time it has upped the ante by recruiting former Samsung Electronics President Chang Won-kie, who worked at the tech giant for nearly 40 years.

Chang has been recruited for the vice chairman position at ESWIN, a Chinese organic light emitting diode (OLED) display driver integrated circuit (DDIC) manufacturer. The recent recruitment has put local semiconductor and display industries on their toes as China plans to speed up its technological development in the OLED sector.

ESWIN was established in February last year by BOE founder Wang Dong-sheng and makes OLED DDICs.

The DDIC is a key component of the OLED that controls the pixels that enhance picture quality.

The technology is not only embedded in TVs but is an essential component in smartphones, smart watches and tablet PCs that are OLED based.

Many industry watchers believe ESWIN, with Chang's help, will cooperate with other Chinese companies to enhance its OLED technologies.

The high-level recruitment is worrisome as Samsung Electronics' DDIC sector has been ranked first in the market for 18 consecutive years.

Many experts believe there is a high possibility Chinese firms will continue to poach key personnel from local tech giants to enhance its technology.

“There is a regulation that prohibits employees from switching over to a competing firm within two years of leaving the company, but after that they are free to do so,” an industry official said. “China has been offering close to double their salary, so more key personnel are expected to leave in the future.”

Chinese companies have been open about their desire to recruit local talent and one even placed a recruitment post on a local job search site: “BOE is looking for experienced workers who developed over 65-inch OLED panels.”

More than 100 former employees of Samsung and LG Electronics are working at BOE.

Despite the controversy, Chang said he would not have taken the position if it required him to compete against Samsung.

“Technology leaks? I am a Samsung man all the way,” he said in an interview with local media. “I told them I won't be involved in work that is in competition with Samsung.

“I have been close with BOE Chairman Wang Dong-sheng for over 10 years. I will be tasked with business consulting maybe one to two weeks a month. The company could later become a partner or customer of Samsung in the future.”

Chang joined Samsung in 1981. He headed the LCD department and the Chinese Samsung Electronics branch before his term as president ended in 2017.

The controversy has shed light on a similar case involving Lee Sang Chul, a former communications minister and chief of mobile carrier LG Uplus, who was recruited to Chinese telecom giant Huawei as chief adviser in 2017.

Both Samsung Electronics and LG Uplus declined to comment on the matter.