Samsung Electronics labor and management reach tentative agreement; new special performance bonus for the DS Division

Samsung Electronics and its labor union have reached a tentative agreement in performance bonus negotiations. The agreement includes creating a new special management performance bonus for the semiconductor (DS) Division. The agreement is tentative, and detailed implementation plans remain to be worked out.

Labor and management set the special management performance bonus at 10.5% of the business performance they agree on. This payment criterion is based on agreed business performance, not the company's operating profit. The company said the payment method is conditional.

The agreement also includes conditions for payment when targets for each period are achieved. From 2026 to 2028, a target of 200 trillion won was set; from 2029 to 2035, a target of 100 trillion won was set. Whether the performance bonus is paid will depend on whether the targets are achieved.

Foreign media reported that the agreement averted a strike, easing some concerns about the South Korean economy and global AI demand. Some reports said Samsung Electronics was likely to meet its target, with operating profit this year reaching 300trillion won. However, some also noted that not all employees were satisfied with the agreement.

Jun-young Park, a former Samsung employee, said some employees seemed disappointed. He said there was a view that it was possible to earn at least 50billion won at Micron. Some reports said SK hynix, which abolished its cap on performance bonuses, paid bonuses more than 3times higher than Samsung. Reports also said that some employees had moved to SK hynix as a result.