How Japanese Companies Can Effectively Recruit and Attract Local Talent in Korea

Japanese companies operating in Korea have a greater need for Korean speakers. This is because fluency in Korean is essential for effectively conducting business and competing with local companies. However, attracting talented individuals who are proficient in both Korean and Japanese poses a challenge, as Korean companies remain more attractive to Koreans in general.

Trends in Hiring by Japanese Companies in Korea

Locals Working for Japanese Companies

Most Koreans who work for Japanese companies are generally proficient in Japanese, even in professional positions such as legal and accounting. 

Similarly to many other countries, younger employees tend to prioritise 'how to enjoy work' over 'how to increase salary and build a career.' 

When working with Korean colleagues, it is important to be considerate not only of the individual but also of their family, as family is highly valued in Korean culture.

Talents that Japanese Companies Seek to Hire Locally

Japanese companies in Korea typically seek candidates who are proficient in Japanese. Certain positions, such as sales and marketing, require Korean language skills to conduct business with locals. As a result, many Japanese companies operating in Korea prioritise hiring Korean nationals who are proficient in Japanese, as this enables them to conduct business in both Korean and Japanese. 

Additionally, due to the growing scarcity of professionals with N1 level Japanese proficiency, there is an increasing demand for candidates with English language skills instead.

Labour Market Trends in Korea

Popular Companies

Stability in jobs and workplaces is highly valued. This is followed by salary level, interpersonal relationships, and job titles. Koreans tend to place greater emphasis on job titles compared to other countries when it comes to building workplace relationships.

Popularity of Japanese Companies

Korean conglomerates are the most popular employers, followed by European and American companies. These companies are popular among professionals who aspire to work in English-speaking environments. The financial industry, in particular, is attractive within the foreign-owned sector.

Japanese companies appeal not only to those who want to work in a Japanese-speaking environment but also to those who seek a secure work environment in which to build their careers.

Successful Industries for Japanese Companies

The retail, semiconductor, and chemical industries are among the most successful sectors for Japanese companies operating in Korea. Within the chemical industry, the field of chemicals used in semiconductors and pharmaceuticals is particularly thriving. Additionally, the retail industry remains strong due to the popularity of well-known Japanese brands.

How to hire Top Talents in Korea

To successfully recruit top talent in Korea, it is crucial to adopt a compensation strategy aligned with the local market. Korean companies continue to hold strong appeal among local professionals and specialists, and the cost of living significantly differs, necessitating a market-based approach to compensation.

Retaining young and high-performing individuals in Korea has become increasingly challenging due to factors such as a declining population and birth rate. As a result, large corporations are making significant investments in employee education and training to enhance retention beyond the initial recruitment phase. It is now uncommon for young and talented employees to stay with a company without clear purposes or career paths.

If you have any questions regarding recruitment, please feel free to contact us.