Chinese firms like Xiaomi, Huawei, LeEco, ZTE and more have had a great couple of years, especially in the case of Huawei. Xiaomi, a relatively unknown firm here in the West has been posing a threat to big Western brands like LG, Motorola, Samsung, Sony and HTC for a long time now. There’s a saying in business that good people result in good products, and it appears some of these Chinese companies have been hiring staff from South Korean giants LG and Samsung, to name a couple, and bringing them to China to work on new products, at least according to rumor.
It would appear that South Korea’s loss is China’s gain, as both LG and Samsung undergo tough restructuring, leaving some employees little choice but to move to Chinese firms. LG, a company that is in the midst of a big restructuring, has apparently had staff leave the company and work for companies such as Xiaomi. Meanwhile, Samsung’s more complicated reshuffle has seen staff move between the group’s many companies and some have gotten fed up and simply jumped ship. Both of these South Korean firms have seen declining profits and less than stellar performances in declining areas such as TVs, Laptops and other consumer electronics which has resulted in many heading elsewhere, with China seen as a favorable prospect that is actually going somewhere.
One major concern for the South Korean economy and government is that Chinese firms have reportedly secured key talent from the likes of Samsung and SK Hynix. The semiconductor business is a huge deal for the South Korean economy, with the Asian country being the world’s leading supplier of memory and storage chips. Chinese companies such as MediaTek have upset giants like Qualcomm in the processor market and it looks like they’re getting close to doing the same where RAM and storage is concerned. Regardless, this is the sort of thing that ends up happening when big firms downsize and have surplus staff leaving the company, the real worry however would be whether or not these Chinese firms have managed to secure industry-critical talent, but there are no specifics on exactly who has left and ended up where.