SK Hynix and union clash over 2026 bonus plan with stock payout proposal

Fifth-round talks in Cheongju exposed a dispute over whether more than half of bonuses should be paid in shares and subject to sale restrictions.

Summary

SK Hynix and its South Korean union remained at odds after a fifth round of bonus negotiations at the company’s Cheongju plant, with the main dispute centered on how a rich 2026 payout should be structured. The company had agreed last year to distribute 10% of annual operating profit to employees, a formula Reuters calculated would translate into an average bonus of 779 million won, or about $547,127, per employee in 2026. The union told members that management proposed paying more than half of the bonus in stock and limiting sales of those shares for a period of time, while also seeking the ability to adjust payouts if losses occur. The union said it would absolutely not accept any arrangement that makes members bear stock-price volatility risk.

Terms & Concepts
  • stock-price volatility: rapid swings in a share price
  • operating profit: earnings from core business operations
  • stock payout: compensation paid in company shares