South Korea’s ‘Contract Departments’ Offer Direct Route to Samsung and SK Hynix

At Sogang University, second-year student Jung Chae-rin is enrolled in the Department of System Semiconductor Engineering, a four-year degree established with memory-chip maker SK Hynix. Her course comes with a guarantee of employment at SK Hynix upon graduation. At Sungkyunkwan University, or SKKU, third-year student Kim Tae-rin is in the Department of Intelligent Software, a five-year integrated bachelor’s and master’s program in AI software created with Samsung Electronics. Her route increases the chances of employment, but she must first clear a separate Samsung hiring process.

SK Hynix has partnerships with several South Korean universities, including Korea University and Hanyang University. Samsung collaborates with institutions such as Yonsei University, the Korea Advanced Institute for Science and Technology, and the Ulsan Institute of Science and Technology. Kim and Jung told CNBC that the programs offered them financial support and greater certainty of securing a job. For the companies, the programs create a pipeline of skilled workers.

Demand for such places is rising. Data from Seoul-based Jongro Academy showed that the number of applicants to contract departments with tie-ups to large companies increased by more than 38% from a year earlier. Those departments also include courses linked to companies such as automaker Hyundai Motor and mobile network operator LG Uplus.

Competition is especially intense for programs tied to Samsung and SK Hynix, which offer workers large pay packets. Jongro Academy data revealed that applications to Samsung Electronics contract departments increased by 6.5% in the 2026 academic year, while applications to SK Hynix-linked contract departments increased by 12.7%. Overall, Samsung Electronics contract courses drew 13.44 applicants for every spot, and SK Hynix contract department courses drew 9.14 applicants per available seat.

SKKU’s Kim said that “juniors from my alma mater keep enrolling in our department every year, and I really feel it when I see that the students coming in tend to have higher and higher grades.” She added, “I don’t think I would have been able to get in with my grades if I were applying now.” Sogang University’s Jung said the competition rate and admission cutoffs were higher for the 2026 academic year than for 2025.

At the Sogang program, every admitted student automatically receives a SK Hynix scholarship, and scholars who meet required academic conditions are also guaranteed employment. The department has scholarships for master’s and PhD courses. Jung told CNBC she receives a study incentive allowance of around 300,000 each month, and her tuition is covered by the scholarship. She added that there are more scholarships based on strong grades and project awards.

Students must maintain a consistent GPA of 2.3 to retain the scholarship and 2.7 for employment with SK Hynix, according to Jung. The benefits come with obligations. Jung said students who drop out of the course must repay the support they received. SK Hynix said graduates must work for the company for a period equal to the duration of their financial support. They enter at the same rank and receive the same base salary and benefits as other entry-level university recruits, the company said.

The path is slightly different at Samsung. At the SKKU program, tuition is covered for the first three years, subject to certain requirements such as meeting minimum grade requirements. Beginning in the second half of their third year, students can enter a separate Samsung hiring process, Kim said. Kim described the hiring process as a “minimum procedure,” but said students must pass it before their employment is confirmed. Only those who pass continue receiving full tuition support during the remainder of the five-year program.

The SKKU course started only in 2024, and the first cohort of students is yet to graduate. The university did not elaborate on other queries sent, including what happens if a student does not clear the Samsung employment process. Sogang University did not respond to CNBC’s request for comment.