This photo shows the logo of SK hynix Inc. at its headquarters in Icheon, southeast of Seoul. (Yonhap)
SEOUL, Jan. 17 (Korea Bizwire) — SK Hynix said it will once again offer employees the option to receive part of their annual performance bonuses in company shares, extending a shareholder participation program introduced last year, even as potential changes to corporate law cast uncertainty over the program’s future.
The memory chipmaker announced Thursday that employees may elect to convert up to 50 percent of their profit-sharing bonuses into company stock. Participants who hold the shares for one year will receive an additional cash premium equal to 15 percent of the purchase value, the company said in an internal notice.
The program applies to the company’s annual profit-sharing bonus, known as PS, which is paid once a year based on overall business performance and can reach up to 50 percent of an employee’s annual salary. Applications for this year’s program will remain open through Jan. 22.
Beginning with this year’s payout — expected as early as late January or early February — SK Hynix will also implement a newly revised bonus formula agreed upon by management and labor representatives in the second half of last year.
Under the updated structure, 10 percent of the company’s previous-year operating profit will be set aside as the total bonus pool, with 80 percent paid immediately and the remaining 20 percent deferred over two years.
South Korea’s chipmaking giant SK hynix Inc. has been named the most desired company to work for among South Korean college students for the first time, a survey showed Monday. (Yonhap)
However, the company cautioned that the shareholder participation program could be scaled back or canceled depending on the outcome of pending revisions to South Korea’s Commercial Act. A proposed amendment that would mandate the retirement of treasury shares is scheduled for legislative review later this month and could be passed as early as February or March.
The announcement comes as SK Hynix is widely expected to post record earnings, driven by surging demand for high-bandwidth memory (HBM) used in artificial intelligence computing. Analysts estimate the company generated nearly 45 trillion won (about $34 billion) in operating profit last year.
Based on those projections and the company’s workforce of roughly 33,000 employees, average individual profit-sharing bonuses could approach 136 million won, though actual payouts will vary depending on tenure and performance.
The company said it would continue monitoring legislative developments before finalizing future iterations of the program.
Kevin Lee (kevinlee@koreabizwire.com)
