Our People

Our Company strives to accelerate the advancement of technology to empower the makers of tomorrow, and we recognize that our employees are the ones who drive this mission forward. We strive to enable our employees to leverage their extensive expertise in engineering, design and process to accelerate the advancement of our technology, allowing us to compete globally and be an industry leader. To that end, we are committed to fostering employee talent, cultivating a culture that is open, productive and fair, so that all of our employees feel safe, valued and respected, and promoting an environment in which our employees are empowered to achieve their full potential.

As a global semiconductor company headquartered in Korea,

As a global semiconductor company headquartered in Korea, our Company, including our Board of Directors and our employee workforce, is reflective of the broader population of the country in which we are based. As of December 31, 2022, our worldwide workforce consisted of 897 employees (full- and part-time), 866 of whom are located in Korea. Of our worldwide workforce, 202 were involved in sales, marketing, general and administrative, 222 in research and development (including 87 with advanced degrees), 44 in quality, reliability and assurance, and 429 in manufacturing (comprised of 46 in engineering and 383 in operations, maintenance and others). Since we are headquartered in Korea, we are not subject to EEO-1 (Equal Employment Opportunity) reporting.

As a global competitor, we believe that our success is tied to our ability to attract and retain talent at all levels of our organization, including our Board of Directors, that is reflective of our employees, our communities of operation and our customers. As a result, we place great importance on inclusion and diversity within the workplace, we aim to create a workplace where all employees feel valued and respected, and we promote the culture of hiring and retaining more female voices. Currently, women represent approximately 22% of our senior management team, which is comprised of the CEO, the CFO, the CCO and the respective heads of Worldwide Sales, Display, Power, Manufacturing, Corporate Strategy and Human Resources.

Our market is constantly evolving, which requires continuous innovation and agility to remain competitive, and requires us to attract and retain a highly skilled workforce. We compete based on design experience, manufacturing capabilities, the ability to satisfy customer needs from the design phase through the shipping of a completed product, the length of design cycles and the quality of technical support and sales personnel. Some of our human capital management related policies and programs supporting our workforce are highlighted below.

Competitive Compensation and Pay Equity

  • We periodically evaluate market practices for compensation and benefits with respect to job functions, roles and responsibilities, job levels and geographical regions, and regularly review our compensation levels and distribution methods to ensure that they are fair and equitable.
  • We offer cash and equity-based compensation programs to incentivize achievement of our short-term financial, operational and strategic goals, foster long-term value, and to attract and retain a highly skilled workforce.
  • We offer various employee benefits under our Company philosophy that ensuring employees enjoy a happier life with their families is as critical as promoting their own health and well-being. Consistent with local practice, employees have access to annual health examination programs. Employees also have access to other benefits, as applicable, such as health examinations for spouses, personal pensions, housing assistance, medical reimbursement plans and educational assistance programs.

 

Growth and Development

  • Talent pipeline development strategy — We have adopted a structured approach to identifying, training, mentoring and developing talent within the organization, with the goal of ensuring a steady supply of skilled and competent employees to fill key roles now and in the future, in order to achieve our long-term strategic goals and drive long-term stockholder value.
  • Graduate traineeship/apprenticeship program — Designed for recent university graduates who are looking to gain practical work experience in their chosen field, our traineeship program involves a combination of classroom training and on-the-job learning, where trainees work alongside experienced professionals to gain hands-on experience.
  • Specialized staff training programs — We offer step-by-step training courses specifically designed for the semiconductor industry to help employees build their job expertise through partnerships with educational institutions focused on education and research in semiconductors, with the goal of training future experts in the industry. We also offer soft skills training for non-technical competencies that are essential for job success, including communication, teamwork and problem-solving.
  • Regular performance appraisal and feedback — Performance appraisal and feedback processes are conducted annually using the MBO (Management by Objectives) method for employee development, growth and performance improvement.
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    In order to promote employee retention, training and advancement at all levels, we evaluate employees in our annual performance review process with the intent to capture employee potential and base our review on considerations related to three primary factors:.

    • Aspiration (advancement, training and development, and overall job satisfaction);
    • Engagement (retention and emotional commitment to the organization); and
    • Ability (including job performance, emotional intelligence and interpersonal skills).

Managers are also encouraged to deliver informal feedback throughout the year to ensure that employees have an opportunity to improve their performance and are aware of training and development opportunities.

  • R&D reward program — To ensure R&D technical professionals continue to advance their skills and knowledge, we have technology committees that attend regular seminars and conduct periodic research. And to promote technical excellence, we have established a performance-based cash award program that rewards employees for special accomplishments, such as achievement of specific R&D targets or breakthrough/high-impact innovations.

 

Culture and Employee Engagement

  • Engagement and satisfaction surveys — Employee surveys are conducted regularly to gain valuable insight into how employees feel about their job, their work environment and our Company as a whole. Areas surveyed include opportunities for employee engagement, job satisfaction, communication, work-life balance and compensation. Survey results are communicated to both management and employees, and we develop action plans to address any areas identified as needing improvement.
  • Grievance reporting and escalation procedures — We are committed to promoting open and honest lines of communication, and we strive to provide a work environment where all employees believe that they can raise questions and concerns without fear of retaliation. To ensure this, we provide a reporting tool in our internal groupware system with which employees can report complaints and grievances. Reporting and escalation procedures have been adopted to address and resolve complaints and grievances raised by employees in a structured and systematic manner. Procedures are followed in a predetermined sequence to ensure that each complaint or grievance is addressed in a fair, consistent and timely manner, and that all parties involved are treated with respect. Moreover, our employees can also utilize the separate online reporting system to express concerns if they experience or suspect a violation of law, the Company’s Code of Ethics or other Company policies.

 

Safety

We appreciate the fact that our employees constitute one of the most critical assets of our Company, and therefore, their safety and wellness are key factors to our success. We have a dedicated team in charge of environment, health and safety (“EHS”) matters that establishes and reviews internal EHS regulations based on international agreements and local laws and regulations. Our ESH team is also responsible for identifying, evaluating and improving EHS issues within the overall manufacturing process to ensure a safe and comfortable work environment. Additionally, we have implemented and maintained an Occupational Health and Safety Management System and an Environmental Management System, as ISO 45001 and ISO 14001 certified, respectively.

In January 2021, the Korean legislature enacted the Serious Accident Punishment Act (“SAPA”), which imposes criminal liability on individuals and entities responsible for “serious accidents”, including industrial accidents that cause death, serious injury or occupational illness. SAPA requires enterprises to establish relevant standards and measures to ensure a certain level of operational safety, including the health and safety of all employees. SAPA went into effect in January 2022, and in connection therewith, we appointed our Chief of Manufacturing to serve as the Chief Safety Officer (“CSO”) of our Korean operating subsidiary; upon appointment, he formed a dedicated team to evaluate, improve and monitor the policies, practices, standards and systems relating to health and safety to ensure compliance with SAPA. Our CSO has over 35 years of manufacturing and industrial EHS experience at Magnachip.

 

Policy Statement

We adhere to human rights and labor standards of international labor organizations, such as the United Nations and the International Labor Organization. We prohibit all forms of discrimination based on gender, race, nationality, religion and age to ensure that all employees work in a safe and fair environment. These values are embedded in our policies:

Our Community

We recognize that the strength of the communities where our employees live and work is vital to our shared success and sustainability, and we strive to foster trusted partnerships with our local communities. We are involved in supporting local communities through employee volunteerism and charitable activities, including food donations on a regular basis in partnership with local administrative welfare centers.

 

Future Workforce Initiatives

We have implemented innovative programs that create lasting impact and meaningful changes, as exemplified in our traineeship program designed for recent university graduates who are looking to gain practical work experience in their chosen field. This program involves a combination of classroom training and on-the-job learning, where trainees work alongside experienced professionals to gain hands-on experience. The program provides individuals with the practical skills and knowledge they need to succeed in their field, and is also a great way to jump-start one’s career and gain valuable networking and work experience.

As part of a partnership with a local university, we have been operating an industry-academia scholarship program since 2018 to foster local human capital for semiconductor expertise and to recruit customized R&D talent by providing work-related lectures and training. such as “Digital Integrated Circuits” and “Analog Integrated Circuits”. Each year, several students are selected to receive a scholarship; the scholarship benefits include a monthly tuition subsidy during the school year and an offer to join Magnachip after graduation.

In 2022, more than 50% of our new hires were recent graduates or graduating seniors from local universities. (By “local”, we mean the three cities in which we have operations in Korea—namely, Seoul, Cheongju and Gumi—and their surrounding areas.) We believe that hiring locally helps build stronger ties between Magnachip and the local communities. Providing work-related training and employment opportunities for local students not only benefits us in our talent acquisition process, but also builds a positive reputation for Magnachip, as well as loyalty and support from our community.