Differences with then-head coach Darryl Sutter caused Korolyuk to be a contract hold-out at the start of the 2000–01 NHL season.

Playing primarily on the second line with Alyn McCauley and Nils Ekman, Korolyuk posted a career-high 37 points.

On 1 October 2006, his rights were traded to the New Jersey Devils, along with Jim Fahey, for Vladimir Malakhov and a first-round draft pick.

Later that season, Korolyuk became interested in an NHL return and requested to Devils management that his rights be traded back to the Sharks.

His request was granted and the Sharks re-acquired him 16 February 2007 for a third-round draft pick, only to have the trade voided six days later when Korolyuk did not report for his physical in the allotted time period.