The landscape of the Cheongju General Industrial Complex where the SK Hynix factory is located. (Photo provided by Cheongju City)
CHEONGJU, South Korea, Feb. 6 (Korea Bizwire) — A record-setting bonus payout by SK hynix, fueled by the chipmaker’s strongest performance on record, is reverberating far beyond company walls, lifting consumer sentiment, real estate prices and even municipal finances in the central city of Cheongju.
The company on Friday distributed performance bonuses under its profit-sharing program at a payout rate of 2,964 percent — the highest in its history. Employees at SK hynix’s Cheongju plant, numbering about 9,600, are said to have received bonuses ranging from tens of millions of won to more than 100 million won each.
The windfall has energized local businesses. Restaurant owners near the plant report a rise in evening reservations, anticipating that corporate dinners and celebratory spending will follow. Department stores are rolling out special promotions targeting SK hynix staff, expecting heavier weekend foot traffic.
The surge has also drawn marketers eager to capitalize. Car dealers, financial advisers and real estate agents have been handing out leaflets during commuting hours near the plant, while pop-up stores have appeared with greater frequency on and around the campus.
SK hynix’s Cheongju plant (Photo courtesy of Cheongju City, North Chungcheong Province)
Housing prices in nearby neighborhoods are climbing in tandem. Data from real estate analytics firm Asil show a series of record-breaking transactions in recent weeks, including a 152-square-meter unit at Shinyoung Jiwell City selling for 1.55 billion won in late December and an 80-square-meter apartment at Doosan We’ve Jiwell City fetching 770 million won in January.
Much of the buying is led by SK hynix employees in their 30s and 40s, with some homeowners reportedly pulling listings amid rising demand.
Cheongju’s municipal government stands to benefit as well. SK hynix is expected to pay several hundred billion won in local corporate income taxes in April, reflecting its historic earnings. The tax — equivalent to 10 percent of corporate income tax before credits, apportioned by workforce size and facility area — goes directly to local governments.
Last year, even amid losses, the Cheongju plant declared more than 121.9 billion won in local corporate income tax. This year’s payment is projected to fall between 200 billion and 300 billion won.
“The growth of a major company directly translates into revitalization of the local economy,” a city official said. “We expect the tax revenue to provide meaningful fiscal breathing room.”
For Cheongju, the semiconductor boom is proving to be more than an industrial story — it is reshaping the rhythms of daily commerce and the city’s financial outlook alike.
Kevin Lee (kevinlee@koreabizwire.com)
