Driven by the AI boom, SK Hynix saw its earnings surge significantly, leading to soaring bonuses for its employees. Workers are expected to be paid an average 779 million won ($547,000) in 2026.
South Korean memory chipmaker SK Hynix has reached a preliminary wage agreement with its workforce to distribute 60% of employee performance bonuses in company shares and the remaining 40% in cash, according to Reuters.
Driven by the AI boom, SK Hynix saw its earnings surge significantly, leading to soaring bonuses for its employees.Estimates suggest average employee bonus payouts for 2026 could reach roughly 779 million won ($547,000 USD).
The proposal marks a shift from last year’s agreement, which promised a 10% operating profit share paid predominantly in cash over a 10-year period.
Under the proposed agreement, employees will receive 40 percent payment in cash and 40 percent in stock, which won’t have any lock-in period. The remaining 20 percent will be provided in stock as deferred compensation: half after one year and the rest after two years.
The deal remains subject to a formal vote and approval by union members before it can be finalized.
The proposal met with opposition from some workers due to volatility in SK Hynix’s shares, even as the stock reached a record high in June driven by the AI boom before some correction.
Analysts say that an all-cash handout would have drained the company’s reserves and could have triggered a public backlash over what some may consider lavish handouts.
