This undated photo provided by SK hynix Inc. shows workers at the company’s chip plant in Icheon, south of Seoul.
SEOUL, Feb. 7 (Korea Bizwire) — SK Hynix has announced that it will grant an additional 30 shares of company stock to employees as part of a ‘New Start Incentive’, following the recent distribution of a 1,500% performance-based bonus last month.
According to industry sources on February 7, the company informed employees through an internal notice that it will distribute 30 shares per person, valued at approximately 6 million KRW ($4,140). The company also stated that it has reached an agreement with the labor union to establish a mutually acceptable framework for future profit-sharing (PS) criteria.
The awarded shares will not be counted toward this year’s PS payout rate and will be immediately tradable, allowing employees to sell them at their discretion.
Last month, SK Hynix distributed a record-high bonus package, including a 1,000% PS bonus and an additional 500% special performance payout, bringing the total to 1,500%. (Yonhap)
Agreement Reached with Labor Unions
The decision follows renewed negotiations between SK Hynix and a joint labor coalition, which includes three unions representing technical office staff and production workers in Icheon and Cheongju plants.
In a statement, SK Hynix emphasized that the management and union have committed to working together with trust and cooperation to drive further growth and innovation. The company said the additional stock grant reflects this shared vision for the future.
Last month, SK Hynix distributed a record-high bonus package, including a 1,000% PS bonus and an additional 500% special performance payout, bringing the total to 1,500%.
Dispute Over Bonus Structure
The PS bonus is an annual incentive tied to performance, with employees eligible to receive up to 1,000% of their base salary, equivalent to 50% of their annual pay.
Since 2021, SK Hynix has based the PS bonus on 10% of the previous year’s operating profit, with individual payouts adjusted according to personal performance metrics. Given that the company achieved a record-breaking operating profit of 23.47 trillion KRW ($16.2 billion) in 2024, employees had anticipated a higher payout.
However, discontent arose within the union regarding the 500% special performance bonus, which they claimed was issued unilaterally without prior consultation. Some union members also argued that the total bonus amount fell short of expectations based on the 10% profit-sharing rule.
Future Negotiations on Wage Talks
In response, the joint labor coalition stated, “Through negotiations, we have secured additional stock compensation as a token of appreciation for employees’ contributions and as a commitment to future collaboration.”
The coalition also declared that it will now shift its focus toward upcoming wage negotiations, reinforcing its stance on ensuring fair compensation and transparency in performance-based incentives.
With labor relations stabilized for the time being, attention now turns to how SK Hynix and its workforce will navigate wage talks in the months ahead.
* Note to editor: The KRW-to-USD exchange rate referenced in the article is based on the rate applicable on the date of publication.
Ashley Song (ashley@koreabizwire.com)
