Samsung Electronics Union Demands 15% of Operating Profit in Bonuses

Samsung Electronics' labor union has come forward demanding that 15% of the company's operating profit be paid as performance bonuses, based on its recent strong financial results. The union claims that assuming annual semiconductor operating profit of 270 trillion won, 15% of this amount, or 40.5 trillion won, should be allocated as bonus funds. This figure is larger than the 10% of operating profit that memory chip competitor SK Hynix uses for its profit-sharing (PS) payout. The bonus amount demanded by the union is approximately 3.6 times the special dividends (11.1 trillion won) Samsung Electronics paid to shareholders last year, and exceeds its research and development (R&D) investment costs (37.7 trillion won).

There are concerns that a significant amount will be channeled into bonus funds at a time when investment in the AI future is urgent. An industry source pointed out that bonus systems should be designed to reward top talent who could be poached by overseas competitors, but the union's current proposal, which seeks a similar distribution to all employees, would significantly increase the bonus budget.

The Samsung Electronics union plans to hold a rally at the Pyeongtaek campus on May 23rd and has also outlined plans for a total strike from May 21st to June 7th if negotiations fail. With the possibility of semiconductor production lines halting, the industry anticipates the union's actions could impact the national economy as a whole.