Samsung, Hyundai Motor unions demand profit-sharing bonus rates like SK Hynix

Unions at Samsung Electronics and Hyundai Motor, drawing inspiration from SK Hynix's profit-based bonus system, have demanded that their companies allocate a certain percentage of operating and net profits as bonus funds. These demands are sparking a broader societal discussion on how corporate profits should be shared with workers.

Last year, SK Hynix decided to use 10% of its operating profit as a bonus pool. Recently, the Samsung Electronics union has requested 15% of operating profit, while the Hyundai Motor union is demanding 30% of net profit as bonus funds. Applying Samsung Electronics union's demand of 15% of operating profit would require approximately 40.5 trillion won (USD 30 billion) in bonus funds, and Hyundai Motor's demand of 30% of net profit is estimated to allocate over 3 trillion won (USD 2.2 billion).

Companies argue that the unions' demands are excessive, raising concerns about rigid cost structures and reduced investment capacity. The Samsung Electronics union has announced plans to hold a rally on April 23rd and go on a 18-day total strike starting May 21st if disagreements are not resolved, while Samsung Electronics has filed for an injunction with the court to prohibit the union's illegal strike.

Major overseas companies, instead of directly dividing a fixed percentage of profits, flexibly adjust compensation by combining metrics such as financial target achievement rates, individual performance, and stock-based awards tied to share prices. This approach has the advantage of reducing the burden of short-term cash outflow by scaling down compensation or deferring it to long-term rewards during periods of poor performance.