"Bonuses Should Be Paid in Local Currency"... Outlandish Claims Emerge Amid Samsung Electronics and SK Hynix Bonus Controversy

The card-type local currency for Gyeonggi Province is not directly related to the content. Yonhap News

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The semiconductor "supercycle" driven by the global expansion of artificial intelligence (AI) investment is now in full swing, leading to a sharp surge in earnings for both Samsung Electronics and SK Hynix. As a result, the size of the performance bonuses to be paid early next year is also expected to reach astronomical figures, and the issue of internal corporate compensation is escalating into a broader social debate.

In particular, given the nature of the industry-where government support and industrial infrastructure investments have gone hand in hand-there is growing discussion over whether it is appropriate for these massive profits to be concentrated among employees of certain companies. Some have even made the outlandish claim that, in order to boost the domestic economy, "performance bonuses should be paid in local currency."

Recently, the global investment bank Macquarie estimated SK Hynix’s operating profit for next year at 447 trillion won. Based on this, the fund for profit sharing (PS) would amount to about 44.7 trillion won, making it possible to pay an average performance bonus of approximately 1.29 billion won per employee, assuming a total workforce of about 34,500.

Employees are leaving work at the SK Hynix headquarters in Icheon, Gyeonggi Province.

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This outlook is attributed to last year’s overhaul of the performance bonus system. Through labor-management negotiations, SK Hynix agreed to allocate 10% of its operating profit as a bonus fund and abolished the previous cap of "1,000% of base salary." As a result, if performance improves, bonuses can effectively increase without limit.

Indeed, "billion-won bonuses" are expected to become a reality again this year. Securities firms estimate SK Hynix’s operating profit for this year at 251 trillion won, and based on this, the average bonus to be paid early next year is expected to be about 728 million won per employee.

This trend is spreading across the entire industry. The Samsung Electronics union has also formed a joint struggle committee and is demanding that 15% of operating profit be distributed as bonuses. Based on an operating profit of 300 trillion won, this would amount to approximately 45 trillion won in bonuses, or an average of about 580 million won per employee for the semiconductor (DS) division, which has around 77,000 employees.

Various arguments are emerging online regarding this issue. Recently, one netizen asserted, "The achievements of Samsung Electronics and SK Hynix were made together with the public," and argued, "Let’s pay performance bonuses in local currency so that the money doesn’t flow into real estate and other asset markets."

Another netizen pointed out, "When Hynix was in trouble, it was revived with taxpayer money through the Korea Development Bank, so shouldn’t the entire nation share in SK Hynix’s bonuses? Why should only Hynix employees benefit?"

The backdrop to this controversy is government support for the semiconductor industry. In 2023, the government introduced the "K-Chips Act," providing tax credits of up to 20% for research and development and facility investments. Over the past two years, the two companies are known to have received tax benefits totaling about 20 trillion won.

Seoul Samsung Electronics Seocho Building.

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On top of this, public support has been concentrated across the industry through infrastructure support under the Semiconductor Special Act and policy financing. In particular, during downturns, the Korea Development Bank supplied low-interest loans, and basic infrastructure such as roads, electricity, and water was also established under government leadership.

For these reasons, some critics argue, "Is it appropriate for only company employees to receive 'lottery-level' bonuses in industries funded by taxpayers?"

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