[Editorial] Should Korea’s chipmakers share their bounty with society?

The burgeoning dispute over record bonuses at South Korea's leading chipmakers, Samsung Electronics and SK Hynix, has escalated into a matter of national significance. Unions, particularly at Samsung Electronics, are demanding a substantial 15% of operating profit be distributed as employee bonuses, with a strike looming if their demands are not met by May 21. This standoff highlights a growing tension between labor and management over the allocation of immense profits generated by the globally crucial semiconductor sector.

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In a poll of 1,310 Korean adults around the country published on Thursday, 74.7% of respondents said the bonuses demanded by workers at Samsung Electronics and SK Hynix were “very high,” while 50.2% said that “social discussion is needed.”

Ordinary South Koreans are closely watching this debate, with a recent poll indicating that a significant majority find the demanded bonuses 'very high' and believe broader social discussion is necessary. The issue transcends mere financial claims; it is viewed as a critical test of the social responsibility expected from companies that are not only major employers but also key drivers of the nation's economic growth. The Hankyoreh editorial board emphasizes that while the sheer scale of the bonuses—amounting to trillions of won—is staggering, the underlying concern is about how these windfalls are shared and reinvested.

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It’s unfortunate that management and labor are absorbed in dividing the spoils among themselves, while giving short shrift to other stakeholders, direct and indirect.

This situation is particularly sensitive given the substantial public support, including government land allocation and significant tax credits under the K-Chips Act, that has been instrumental in fostering the semiconductor industry. The government and society have made considerable investments, believing that the industry's success ultimately benefits all Koreans. Therefore, the current focus on dividing profits among management and labor, while seemingly neglecting broader societal contributions, is seen as a failure of symbiosis and solidarity. The Hankyoreh urges both management and labor to consider proposals for sharing excess earnings more widely, recognizing the societal consensus that underpinned the industry's growth.

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Symbiosis and solidarity are the values that Samsung’s leaders and union members must seek to realize.