Azernews.Az

By Alimat Aliyeva

The AI boom has driven South Korea’s chipmakers to record-breaking profits, leading to the creation of a new bonus system that links employee payouts directly to company earnings. In some cases, bonuses could exceed six times an employee’s annual salary, AzerNEWS reports, citing Korean media.

Samsung Electronics recently reached a tentative agreement with its labor union, following a similar move by SK hynix. The deal effectively introduces an “AI bonus” era in Korea’s tech industry and is already encouraging unions in other sectors to demand similar profit-sharing systems.

The trend is spreading beyond semiconductors. Employees at companies such as Samsung Biologics, shipbuilders under HD Hyundai, and Hanwha Ocean are now pushing for larger shares of operating profits to be distributed as bonuses.

Under Samsung’s proposed system, 10.5% of annual profits from its semiconductor division will be allocated to employee performance bonuses over the next decade, mostly in the form of company shares. Previous limits on bonus payouts will also be removed. However, the company must maintain extremely high profitability targets — including annual operating profits of at least 200 trillion won between 2026 and 2028.

The bonus structure strongly favors Samsung’s memory chip division, which is benefiting from soaring demand for AI chips and high-bandwidth memory (HBM). Analysts estimate that some workers in the memory division could receive bonuses of up to 600 million won (around $400,000) next year if current profit forecasts hold.

Interestingly, this reflects a major shift in corporate culture in South Korea. Traditionally, Korean companies prioritized stability and long-term investment over aggressive employee compensation. But the global AI race has changed the landscape, turning semiconductor engineers into some of the most highly rewarded workers in the country.

Still, critics argue that the new system may weaken shareholder rights because bonuses are tied to operating profit before taxes and investor returns are calculated. Some economists warn that if other industries adopt the same model, companies could face growing financial pressure and reduced investment in research and development.

Even South Korean President Lee Jae Myung expressed concern, saying that investors — who bear financial risks — should have priority when it comes to sharing company profits.

Meanwhile, shareholder groups are threatening legal action against Samsung, arguing that such a major compensation policy should first be approved by shareholders at a formal meeting.

Many experts now believe Samsung’s agreement could become a turning point for labor relations in South Korea, potentially redefining how major corporations share profits with employees in the AI era.