Employees at SK Hynix, South Korea’s major semiconductor manufacturer, are celebrating massive performance bonuses exceeding $71,730 per worker this year, highlighting stark differences in how companies share profits with employees.
The memory chip giant plans to distribute approximately $3 trillion won in total bonuses to its 33,625 employees.
Workers earning base salaries of $71,730 could receive individual payouts ranging from $78,892 to $93,236, according to industry reports.
These bonuses represent a 47% to 80% increase from earlier SK Hynix payouts this year that averaged $53,798.
The windfall stems from SK Hynix’s exceptional performance in high-bandwidth memory chips, which are crucial for artificial intelligence applications.
Securities analysts project the company’s annual operating profit will reach $26.5 to $27.9 billion this year.
SK Hynix workers have flooded company forums and workplace apps with celebratory messages and loyalty pledges to Chairman Chey Tae-won.
“What are you doing? Overtime starts today. We’re moving up development schedules by a day,” one employee posted on workplace app Blind.
Another worker wrote: “Let’s get to work. Samsung is catching up. Let’s work hard on development and production.”
Some employees posted Chairman Chey’s photos with messages reading “Loyalty, loyalty” and “I should hang this at home.
It’s a money-bringing photo,” with replies about ordering picture frames and organizing group purchases.
The bonus agreement emerged from labor negotiations Tuesday between SK Hynix management and unions.
The deal eliminates previous caps that limited performance bonuses to 1,000% of base salary, instead distributing 10% of the company’s operating profit directly to employees. Basic wages will also increase 6%.
Under the new “8:1:1” payment structure, workers receive 80% of bonuses immediately, with the remaining 20% paid over two years in 10% annual installments.
The agreement applies for the next decade, pending union member approval in Thursday’s voting.
Previously, SK Hynix limited annual bonuses to 50% of salary or 1,000% of base pay under its “excess profit sharing” program.
The generous SK Hynix precedent is already creating pressure across South Korea’s technology sector.
Samsung Electronics union members sent protest letters to executives including Chairman Lee Jae-yong on Tuesday, citing the “irrationality of the current performance bonus system” and demanding similar compensation structures.
Other South Korean companies engaged in labor negotiations may face similar union demands pointing to SK Hynix’s payouts as precedent.
For comparison, American tech workers typically receive stock options and smaller cash bonuses tied to company performance, while SK Hynix’s model distributes current profits as direct cash payments that approach or exceed median U.S. household incomes.
