South Korean conglomerates are ramping up employee benefits in a fierce competition to attract young talent, as job seekers increasingly prioritize perks and compensation over corporate vision and growth potential.
CJ Group, currently conducting its first-half recruitment drive, recently released a YouTube video featuring celebrities and employees highlighting its benefits. Among them: a 40% staff discount at its health and beauty chain Olive Young, additional coupons during sales events, and extended paid vacations for long-serving employees. The company also flies all new hires to Jeju Island’s prestigious Nine Bridges golf course for a 10-day orientation.
In a sign of its appeal, CJ ranked second in a recent job preference survey, surpassing industrial giants like SK, Hyundai Motor, and LG. The group, South Korea’s 13th-largest by assets, trailed only Samsung as the most desired employer.
Starting this year, CJ employees can receive partial coverage for flights and accommodations to attend K-pop concerts like KCON and the MAMA music awards in the U.S. and Japan, a company representative said.
“The trend is shifting. For young job seekers, benefits are no longer just perks but key indicators of workplace quality,” said a human resources executive at a top-four chaebol.
According to recruitment firm Incruit, “competitive salary and rewards” topped the list of reasons college students preferred certain employers for the third consecutive year, overtaking past factors like industry interest and career growth opportunities.
In response, South Korea’s biggest companies are stepping up their offerings:
- Samsung Electronics provides employees with an Olympic-grade 50-meter swimming pool, a 150-meter jogging track, rock climbing facilities, and high-end fitness centers.
- SK Hynix offers free meals four times a day, including late-night snacks, and hosts family retreats where children receive immersive English and science education while parents relax.
- Hyundai Motor gives employees discounts of 10-30% on company vehicles and covers hotel stays for couples after childbirth.
- LG Group extends traditional holiday breaks and provides up to 20 million won ($15,000) annually for non-reimbursable medical expenses, including hair loss treatments.
- POSCO operates a biweekly four-day workweek across all divisions and allows remote work for parents with young children.
- Lotte Department Store became the first major company to mandate up to three months of paternity leave and grants bereavement leave for pet owners when their dog or cat dies.
Even labor negotiations are increasingly focused on benefits. Samsung’s latest wage agreement included distributing 30 shares of company stock to employees, 2 million won worth of employee store points, and rehiring retired employees with three or more children. POSCO, facing economic headwinds, increased childbirth incentives and employee welfare allowances in its latest contract talks.
While some companies internally question whether enhancing benefits is sustainable amid economic uncertainty, industry insiders say they have little choice.
“With companies tightening budgets, there’s concern about excessive spending on benefits,” said a senior business executive. “But in today’s market, welfare programs are a crucial tool for attracting top talent.”
