SK Hynix Inc’s labour union has approved a historic agreement that could give employees an average bonus of around US$80,000 (RM338,560) for 2025, preventing a potential strike and setting a benchmark for South Korea’s tech sector.
Under the deal, 10% of the company’s annual operating profit will be allocated to a bonus pool for its 33,625 employees—a key demand of the union. Analysts estimate the agreement, which also includes a 6% wage increase, will cost SK Hynix about 3.8 trillion won (US$2.7 billion). Individual payouts will vary depending on tenure and seniority.
The payout comes amid a projected 60% jump in SK Hynix’s operating income, driven by strong demand for high-bandwidth memory used in artificial intelligence systems. The new compensation structure, set to last 10 years, could influence labour practices across other Korean tech companies.
The agreement also pressures Samsung Electronics Co., whose bonuses are not linked to operating income. Following the SK Hynix deal, unions from five Samsung affiliates urged the company to revise its bonus system for more transparency.
SK Hynix’s new bonus plan removes the previous cap of 1,000% of base salary, a source of prior conflicts. Under the agreement, 80% of the 2025 bonus will be paid early next year, with the remaining 20% distributed over the following two years.
Employees at SK Hynix have expressed strong support and loyalty, while workers outside the company have reacted with envy, highlighting the deal’s industry-wide impact.
