People walk past a Samsung Electronics building in Seocho District, southern Seoul, Friday. Yonhap
Han Myung-ae starts work before most people are awake and rarely stops before dark. As a real estate agent, her commissions are capped by law, so when she learned that Samsung Electronics employees in the memory chip division could pocket bonuses of up to 600 million won ($397,000) this year, the news did not sit well.
“They already earn more than most of us just for being at Samsung, now they want even more and are making a scene out of it,” the 58-year-old told The Korea Times, referring to the drawn-out labor negotiations that ended just short of a strike.
Han's sentiment illustrates the mixed reactions of Koreans as Samsung Electronics and SK hynix roll out record bonus packages fueled by an artificial intelligence (AI)-driven semiconductor supercycle.
If the tentative wage agreement reached Wednesday between Samsung Electronics and its union is ratified, 10.5 percent of the company's projected 300 trillion won in operating profit this year would fund a special performance bonus pool. Employees in the memory chip division are estimated to receive up to 600 million won before tax this year, including existing overall performance incentives (OPI) payments.
Last year, SK hynix scrapped a 1,000 percent base salary bonus cap and tied bonuses to 10 percent of its operating profit. Earlier this year, SK employees received an average of 148 million won each, equivalent to 2,964 percent of base salary. Some projections put the figure at 600 million to 700 million won per person next year.
The eye-popping bonuses at a handful of chipmakers have left many feeling left behind.
“Ordinary people working hard in their own fields can't earn anything beyond a fixed and often small salary,” Han said. “This isn't about ability. They just happened to start at Samsung and now they want even more. There are hardworking people everywhere who are just as capable.”
Kim, 70, a retiree who asked to be identified by surname only, said Samsung Electronics labor unions were overreaching. “You can claim a share of the profits, but then you'd also have to be willing to share the losses.”
Kim added that profit-sharing and wages are two different things and that employees asking for a cut of profits on top of their wages are claiming what belongs to shareholders.
Source: Korea Times News
