The big picture: Buoyed by the windfall profits generated by the AI boom, South Korean chipmaker SK Hynix is reportedly planning to pay hefty performance bonuses to its staff, averaging around 700 million won (about $477,000) per employee. With the AI chip supercycle expected to continue well into 2027 and beyond, those bonuses could rise to roughly $900,000 next year.
After removing its previous bonus cap last September, SK Hynix is set to pay out 10% of its annual operating profits to employees as performance-based bonuses this year. With memory prices at record highs, analysts predict the company will generate about 250 trillion won ($169 billion) in operating profit, putting the bonus pool at an estimated 25 trillion won ($16.9 billion), according to Korea JoongAng Daily.
The money will reportedly be distributed among roughly 35,000 employees, with each worker expected to receive an average of $477,000. This comes on top of the 140 million won (about $95,000) in profit-sharing bonuses the company has already paid to each employee on average earlier this year. If profits continue to rise, each SK Hynix employee could receive nearly $900,000 in performance-based bonuses next year.
The news about SK Hynix's plans is creating ripples at another major South Korean chipmaker, Samsung. According to reports, the company's employee union is demanding 15% of operating profits as bonuses this year, while management is only willing to offer 10%, matching SK Hynix's plan. If the union has its way, the company's 77,000-strong workforce would receive a combined 29.8 trillion won ($20.2 billion) in bonuses, amounting to around 580 million won (about $396,000) per employee.
Curiously, the bonus payout plans are facing significant pushback online, with some South Koreans calling for the money to be shared with the public instead. On social media and online forums, many argue that the windfall profits were made possible by state support, and that the gains should therefore be shared with citizens. These comments refer to the 20 trillion won ($13.6 billion) in low-interest loans and tax credits the companies received from the government and state-run banks in 2024.
One commenter on the South Korean workplace forum Blind argued that SK Hynix would likely have collapsed without the infusion of taxpayer money, and that the company should reward its benefactors by sharing its profits. Another Blind user, claiming to be an employee of the state-run financial institution Credit Guarantee Foundation, suggested that the bonuses be distributed in local currency vouchers to boost domestic consumption.