The booming cycle of artificial intelligence (AI) chips has ushered in a period of substantial profits for South Korea's two leading memory chip producers. At SK Hynix, employees are set to receive lavish bonuses, with the average bonus per person projected to hit around KRW 700 million (approximately RMB 3.259 million) this year, and potentially climb to nearly KRW 1.3 billion (about RMB 6.051 million) in the coming year. The company abolished the bonus ceiling last September and pledged to distribute 10% of its annual operating profit as performance bonuses. Analysts forecast that by 2026, its operating profit will soar to roughly KRW 250 trillion, with a bonus pool of about KRW 25 trillion being shared among around 35,000 employees.
In contrast, Samsung is grappling with challenges. Its labor union is demanding that 15% of operating profits be earmarked for dividends, but the management's counteroffer of 10% was turned down. The union has threatened to strike and is planning a rally on April 23, prompting Samsung to seek an injunction to halt any "illegal activities" during the strike. Previously, amid the downturn in the memory chip market from 2023 to 2024, both companies offered more modest bonuses. The current industry rebound is fueled by a spike in demand for AI-specific memory products.
The generous bonuses have triggered public backlash, given that both companies enjoy tax incentives. Macquarie projects that SK Hynix's operating profit will reach KRW 447 trillion next year, with individual bonuses potentially surpassing KRW 1 billion.