Jobless growth characterized by a economic growth without job creation begin to appear in Korea. And labor management relations based on distrust and labor dispute shows no sign of improvement in Korea. An extraordinary success of Yuhan Kimberly maximizing human capital through extensive training has drawn an unprecedented attention from the academic and the practician at the same time. It demonstrate clearly that there is an effective solution based on skill and knowledge of employees for many Korean firms who are trying to find a way to overcome the harsh competition in domestic and international market. In fact, skill-based evaluation and pay is considered as an important source of competitive edge by Yuhan Kimberly. Our paper aims to examine its skill-based pay in depth and draw some critical success factors. A skill-based pay is a pay scheme determining an employee's pay according to his job ability grade reflecting his job-related competence. In contrast to job-based pay under which a pay is determined by a worth of job an employee hold, a level of job-related competence determines en employee's pay level in skill-based pay. To effectively operate, it requires an intensive training and development, rigorous evaluation of skill level. In Yuhan Kimberly, there exist 8 job competence grades based on the whole career life. Whenever an employee move forward this competence grades, he gets an additional pay prefixed by an pay table. To be promoted, he has to pass a theoretical and exercise test. And to pass the test, he has to follow intensive training course. In all, pay difference based on job-related competence, an intensive training and rigorous absolute evaluation support each other and promote strongly competence development of employees in Yuhan Kimberly. The skill-based pays in Yuhan Kimberly has been playing an important role in improving productivity, quality and safety. They have increased from 4 times to 10 times recent years. Its success results from the fact that Yuhan Kimberly designed skill-based pay in considering its own core values and business strategy, not just benchmarking other firms' practice. It owes its success also to its people focused management philosophy, a high mutual trust between management and labor union, and involvement maximizing HRM.