South Korea's Top Four Conglomerates Cut 12,300 Jobs in 2025

South Korea's four largest conglomerates—Samsung, SK, Hyundai Motor, and LG—collectively eliminated 12,300 positions between the end of 2024 and the end of 2025, according to new research from the Korea CXO Institute. The workforce contraction marks a significant shift for employers that together account for roughly 40% of all large-company jobs in the country.

The Korea CXO Institute analyzed employment data across 102 major business groups with assets exceeding 5 trillion Korean won. The four conglomerates employ approximately 734,000 people, representing 38.2% of the 1.92 million workers at these large firms.

Breaking a growth streak

Samsung, the nation's largest private employer, reduced its workforce by 931 people—the first decline after seven consecutive years of employment growth dating back to 2017. SK Group cut 3,699 positions, while Hyundai Motor eliminated 2,375 jobs.

LG posted the steepest reduction among the four, shedding 5,370 employees over the year. The declines came despite ongoing strength in semiconductors, as weakness in petrochemicals and secondary battery sectors weighed on overall performance. Mass retirements among baby boomers also contributed to the workforce contraction.

AI and automation reach critical threshold

Analysts at the Korea CXO Institute pointed to accelerating adoption of artificial intelligence and automation technologies as a key factor limiting job creation capacity at large corporations. The institute noted that these employers' ability to generate new positions "is not what it once was."

Across all 102 business groups surveyed, total employment rose just 0.4%, from 1,912,302 to 1,920,500 people. However, that modest gain was driven almost entirely by Hanwha Group's acquisition of Ourhome, which added 10,000 employees to the rolls. Excluding that one-time effect, aggregate employment at South Korea's largest companies trended downward.

Platform economy expands

Coupang stood out as a notable exception to the broader pattern. The e-commerce platform and its affiliates added 8,250 employees over the year—the largest organic increase among domestic business groups. Coupang crossed the 100,000-employee threshold for the first time, reaching 108,131 workers and surpassing SK Group's 104,602 employees.

The shift reshuffled the employment rankings among South Korea's largest private employers to Samsung, Hyundai Motor, LG, and Coupang. The divergence between traditional conglomerates and platform companies highlights a broader transformation in the country's employment landscape.

Why it matters

The simultaneous workforce reductions at South Korea's four dominant conglomerates signal a structural shift in how the country's largest employers approach headcount amid rapid technological change. As AI and automation tools become more sophisticated, even companies with strong financial performance are finding fewer opportunities to expand their workforces. The contrast with Coupang's rapid hiring underscores how platform-based business models continue to generate employment even as traditional manufacturing and industrial conglomerates pull back—a pattern with significant implications for workforce planning and economic policy.

These findings were first reported by the Chosun Ilbo, based on research conducted by the Korea CXO Institute.