SK Hynix to pay 60% of performance bonuses in company stock after tentative labor deal

SK Hynix and its labor union have tentatively agreed on the 2026 wage and collective bargaining terms, resolving key issues including the distribution of performance-based bonuses. The agreement outlines a novel approach to distributing these bonuses, with 40% to be paid in cash and the remaining 60% in company stock.

This structure is part of a tentative agreement for the 2026 wage and collective bargaining, which was explained to union members at an emergency general meeting. The core of the agreement involves paying 40% of the performance share (PS) in cash within the year it is earned, while the other 60% will be given as company stock. Of the stock distributed, 40% can be sold in the same year, with the remaining 20% subject to deferred payment.

Industry estimates suggest that if SK Hynix meets its annual operating profit goal of 250 trillion won this year, the performance bonus pool could reach 25 trillion won, representing 10% of the operating profit. This would translate to an average performance bonus of approximately 700 million won per employee before taxes. However, the actual value received by employees will fluctuate with the company's stock price, meaning the stock portion, valued at about 420 million won, could increase or decrease.

The tentative agreement marks a significant step in labor relations for the semiconductor giant, balancing immediate financial needs with long-term company value and employee investment.