The Samsung Electronics union's demand for a 4 trillion won performance bonus, averaging 6.2 billion won per employee, has sparked controversy.

Korean Media: Samsung Electronics Union Demands "Distribute 15% of Operating Profit" – Performance Bonus of 40 Trillion KRW, Average of 620 Million KRW per Employee

It is reported that the Samsung Electronics union has requested the company allocate 15% of its operating profit as performance bonuses. Initially, the union sought to abolish the cap on performance bonuses and distribute 10% of operating profit. However, following Samsung's announcement of its all-time highest earnings last week, the union raised its demands. Analysts predict that Samsung Electronics’ annual operating profit could reach up to 30 trillion KRW (approximately 1.38 trillion RMB), meaning that if the union’s request is met, the maximum performance bonus could amount to 45 trillion KRW (approximately 206.4 billion RMB).

According to industry sources on the 12th, after Samsung Electronics announced its record-high operating profit of 5.72 trillion KRW (approximately 24.86 billion RMB) on the 7th, the union immediately argued that assuming an annual chip operating profit of 270 trillion KRW (approximately 12.4 trillion RMB), 15% of this would require setting aside 40.5 trillion KRW (approximately 185.7 billion RMB) for performance bonuses. With labor-management negotiations currently broken down, the union has further escalated its demands. SK Hynix sets its performance bonus at 10% of operating profit—significantly lower than the union’s demand.

The union’s requested 15% of operating profit (40.5 trillion KRW) amounts to four times the dividend Samsung plans to pay to its 4 million shareholders in 2025 (approximately 1.1 trillion KRW, or 50.9 billion RMB), and exceeds Samsung’s 2025 research and development (R&D) investment (37.7 trillion KRW, or 1.729 trillion RMB). According to the union’s calculations, the average pre-tax performance bonus per employee in Samsung Electronics’ memory division could reach 620 million KRW (approximately 284 million RMB).

The industry generally considers the union’s requested bonus scale excessively unrealistic. The reason is that global competition over investments in the artificial intelligence (AI) market has intensified, and such demands may hinder Samsung’s long-term strategic investments, R&D, and M&A projects needed to maintain its leading position.

Public opinion suggests that allocating 40 trillion KRW to acquire competitive global chip design companies or AI firms could certainly create new growth momentum. In 2020, SK Hynix acquired Intel’s NAND business for approximately 10.3 trillion KRW (about 472 million RMB). In 2016, Samsung acquired Harman International for around 9 trillion KRW (about 413 million RMB); in 2025, Samsung spent 2.4 trillion KRW (about 110 million RMB) acquiring FläktGroup, Europe’s largest air conditioning equipment manufacturer. According to industry insiders: “Companies indeed need to share profits with employees to some extent, but excessive bonuses may impede long-term corporate development,” adding concerns about potential shrinking investments in next-generation technologies and equipment.

Source: Chosun Ilbo

Original Article: toutiao.com/article/1862335414064192/

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