SEOUL, Nov. 23 (Korea Bizwire) – Samsung’s Semiconductor Division is reaping the benefits of a semiconductor boom that has equated to exports increasing by 53.9 percent through Q3 compared to the same period last year.
According to a statement from the Ministry of Trade, Industry and Energy on November 15, semiconductors at 16 percent make up the largest portion of the record-breaking $430.1 billion in exports (through Q3). The previous high recorded was $424.9 billion through three quarters in 2014.
The windfall has trickled down to the tune of special performance bonuses four times employees’ monthly salaries. On November 22, Samsung Electronics issued a statement saying, “To invigorate our employees in the semiconductor division who have achieved outstanding results, a decision to reward them with special performance bonuses amounting to 400 percent of each individual’s base salary was made on November 23.”
The average base salary of a first year managerial position is 3 million won, meaning the bonus would equal a mammoth 12 million won.
This marks the first time a special bonus was handed out in four years. In 2013, a special bonus was given to all Samsung employees as a commemorative gesture to celebrate the 20th year of the “New Management Initiative” launched by chairman Lee Kun-hee. Speaking in Frankfurt, Germany at the time, Lee famously said, “Let’s change everything except wives and children.”
The special performance bonus is expected to have no bearing on the annual bonuses handed out at the end of January. Calculated using a framework called the OPI system, a division that exceeds its set targets can receive up to 20 percent of the excess earnings as bonuses. Individual bonuses taken from this amount are capped at 50 percent of each employee’s base salary.
Samsung has revealed that it will also spread the wealth amongst its partner companies through approximately 30 billion won in incentives. The checklist for these incentives range from abiding by work safety regulations to attaining productivity targets.
A 15 billion won “win-win” co-op fund will also be established for future collaborative business dealings, Samsung said.
Including the 20.1 billion won in incentives already provided to 138 industry partners in the first half of the year, Samsung’s contributions to the industry are estimated to reach around 65 billion won.