Samsung Electronics Employees Face Up to 250 Million Won in Extra Taxes on 600 Million Won Bonuses

Employees in Samsung Electronics' semiconductor (DS) division, set to receive special performance bonuses of up to 600 million won, may have to pay an additional 250 million won in income tax per person. The tax burden is expected to increase proportionally with the high bonuses. According to a National Tax Service simulation, a married employee, Mr. A, with an annual salary of 100 million won and one child over 8 years old, who receives a special management performance bonus of 600 million won, would see their final tax liability jump approximately 19.4 times from 12.74 million won to 247.19 million won, triggering the top tax rate of 42%. Mr. A would need to pay an additional 7.19 million won during year-end tax settlement.

The special management performance bonuses are entirely paid in company stock after taxes. The value of stock distributed will be the bonus amount minus the withheld tax. One-third of the distributed company stock can be sold immediately, while the remaining two-thirds are restricted from sale for one and two years, respectively. (Note: The second sentence in the original Korean appears to be a repeat.)

Under a tentative agreement reached between Samsung Electronics management and labor for the 2026 wage negotiations, the company has decided to separate payments for the OPI (Organizational Performance Incentive) and the special management performance bonus for the DS division. The DS division's special management performance bonus has been set at 10.5% of the business performance, as agreed upon by labor and management, with no upper limit. This special bonus for the DS division will remain valid for the next 10 years upon achieving minimum operating profit targets. Samsung Electronics management and labor will distribute the OPI and the special performance bonus for the semiconductor division separately.

The agreed-upon wage increase rate is 6.2% (4.1% base pay, 2.1% performance-based). For the finished product (DX) division, company stock worth 6 million won will be distributed. This tentative agreement will be finalized after a union vote.