SK hynix and labor representatives, who had been in conflict over performance bonuses, dramatically reached an agreement after approximately three months of wage negotiations. They decided to abolish the performance bonus cap of '1,000% of the basic salary' and to use 100% of the annual operating profit, amounting to 10%, as the performance bonus resource.
According to industry sources on the 1st, SK hynix's labor representatives reached a tentative agreement on '2025 wage negotiations' and explained it to members at the campuses in Icheon and Cheongju.
This agreement includes the abolition of the existing PS payment limit (maximum 1,000%) and stipulates that 100% of the annual operating profit, amounting to 10%, will be used as a resource for the PS. It also states that 80% of the PS amount calculated will be paid in the current year, while the remaining 20% will be paid over two years (10% each year). PS is an incentive that can pay up to 50% of the annual salary (1,000% of the basic salary) based on annual performance.
Although there was already a provision to use '10% of the operating profit as a performance bonus resource,' not all of the 10% was utilized due to the PS cap criteria. Consequently, the labor union argued that the full 10% of the operating profit should be paid as a performance bonus, leading to a conflict with the management that resulted in the first strike crisis in the company's history.
If the tentative agreement is finalized this week, the new performance bonus criteria will likely apply starting with the PS scheduled for payment at the beginning of next year, based on this year's annual operating profit. SK hynix and labor representatives have also tentatively agreed to a 6.0% wage increase this year.
According to the securities industry, this year's operating profit forecast for SK hynix is expected to be around 39 trillion won at most. If this estimate holds, the PS resource is approximately 3.7 trillion won (10%). With the abolition of the cap, the possibility of using the full 10% resource has increased.
There may be differences depending on individual years or performance, but considering that SK hynix's total workforce is about 33,000, each member would receive an average performance bonus (PS) of about 110 million won.
According to the new criteria, 80% (approximately 88 million won) will be received at the beginning of next year, while 11 million won each will be received in 2027 and 2028. This performance bonus criterion is set to apply over the next ten years.