Court: Two former Samsung employees barred from working for SK Hynix until April 2027
A South Korean court has partially upheld Samsung Electronics' request for a non-compete clause against two former employees who joined rival SK Hynix. The employees are restricted from working for SK Hynix until April 30, 2027.
The Suwon District Court in South Korea has partially ruled in favor of Samsung Electronics in its legal dispute against two former NAND flash memory design employees who joined competitor SK Hynix. The court has prohibited the two individuals from working for SK Hynix and its affiliates until April 30, 2027.
The case stemmed from Samsung's concerns over the loss of key personnel. The employees had worked in Samsung's memory division for approximately 10 to 11 years, reportedly involved in NAND flash design, before departing for SK Hynix in February. Samsung sought a two-year employment restriction based on a non-compete agreement.
The court determined that the NAND flash design technology in question is considered "national core technology" in South Korea, necessitating some employment restrictions to protect the company's legitimate interests. However, the court reduced the restriction period to 18 months, falling short of Samsung's full request.
Samsung Electronics and SK Hynix are major competitors in the global memory chip market, with significant rivalry in the NAND flash sector. The movement of high-level design talent between these companies can impact technological advantages and market share.