Bonus Disputes Spread: Will Wage Gap Between Large Corporations and SMEs Widen?

Disputes over performance bonuses are showing signs of spreading to other companies, fueling concerns across the broader labor market. Unions at Samsung Electronics and Hyundai Motor have demanded a share of last year's net profits as performance bonuses, with major companies estimated to pay out over 60 trillion won in total.

Critics argue that using funds intended for future facility investment or technological development for bonuses could weaken a company's fundamental financial health. Shin Se-don, Professor Emeritus of Economics at Sookmyung Women's University, pointed out that distributing a significant portion based on current year's performance neglects sound management principles.

These performance bonus demands also raise concerns about widening the wage gap with small and medium-sized enterprises (SMEs). A recent court ruling defined performance bonuses not as 'compensation for labor, but a distribution of management performance.'

Hwang Yong-sik, a professor of Business Administration at Sejong University, explained that in other countries, performance is commonly compensated through stocks or stock options. Korea's practice of cash payouts might be perceived as an anomaly internationally.

Meanwhile, some argue that since the public indirectly supports corporations, they should also share in the profits. The performance bonus issue is escalating into a broader social issue.