SK Hynix and its labor union are renegotiating bonus payments after the company proposed replacing some cash payouts with company shares [1].
The dispute centers on how the company will distribute rewards during a period of massive profit growth. Because the shift would alter a decade-long tradition of cash-heavy payments, the union has expressed opposition to the proposal [1].
During a main negotiation session on the 21st, the two parties remained deadlocked over the payment structure [1]. This followed a third round of negotiations held on the 14th [1]. For the past 10 years, the company has maintained a specific bonus payment method [1]. In the previous cycle, this consisted of 80% in cash, with the remaining 20% paid out over two years [1].
The company is seeking this change to reduce the immediate cash burden and increase shareholder value. This request comes as SK Hynix faces a significant financial obligation for bonuses based on projected operating profits [1]. While reports on the 2026 operating profit forecast vary between 27 trillion won and 270 trillion won [1], the company's previous year operating profit stood at 4.7 trillion won [1].
Under the current projections, some estimates suggest average bonuses per person could reach between 700 million and 800 million won [1]. The scale of these payouts has prompted the management to suggest the equity-based alternative to preserve liquidity, a move the union views as a reversal of established benefits [1].
Negotiations are ongoing, and a final agreement on the payment method has not yet been reached [1].
“SK Hynix seeks to replace some cash payouts with company shares.”
This conflict reflects a broader tension in the semiconductor industry where rapid AI-driven growth is creating unprecedented profit windfalls. By attempting to shift bonuses from cash to equity, SK Hynix is trying to align employee interests with shareholders while protecting its cash reserves for future capital expenditures. However, the union's resistance highlights a refusal to accept increased financial risk, as stock-based compensation ties worker income to market volatility rather than guaranteed cash.
