Samsung Electronics reaches tentative bonus agreement, allocating a share of operating profit10.5allocation rule finalized
Samsung Electronics' management and labor5 in 20 reached a tentative agreement to set the bonus pool at a share of business performance. Payments will be made only if the semiconductor (DS) division meets its targets, and operating profit targets for each period will be paid in after-tax treasury shares. Government officials are concerned that if demands for the same approach spread across industry, they could affect labor-management negotiations, including those in the automobile sector.10.5Payments will be made only if the semiconductor (DS) division meets its targets, and operating profit targets for each period will be paid in after-tax treasury shares. Government officials are concerned that if demands for the same approach spread across industry, they could affect labor-management negotiations, including those in the automobile sector.
Samsung Electronics' management and labor5 in 20 reached a tentative agreement. The agreement was reached after voluntary negotiations arranged by Employment and Labor Minister Kim Young-hoon at the Gyeonggi Employment and Labor Office in Suwon. The agreement was reached hours before a planned strike.
Earlier, management and labor5 from 18 to 19 conducted post-mediation talks, but disagreements over the bonus pool and other matters led them to declare a final breakdown on the morning of 2. They later held additional negotiations mediated by the employment minister and reached a tentative agreement. The agreement averted the strike threat for now.20. They later held additional negotiations mediated by the employment minister and reached a tentative agreement. The agreement averted the strike threat for now.
Under the agreement, the bonus pool will be funded with a share of business performance10.5. The payment condition will be determined by whether DS, the semiconductor division, meets its targets. The parties agreed to limit the scope to the DS division.
The payment method is divided according to targets for each period. Starting this year through2028, operating profit200trillion won must be achieved for the performance bonus to be paid. The rules stipulate that the full after-tax amount will be paid in company shares.
For the following period,2029 through2035, operating profit100trillion won must be achieved for payment to be made. This rule applies only when the DS Division meets its target. The risk of a short-term strike has been resolved through labor-management agreement.
Government circles are voicing concern that the demand at the heart of this agreement—“allocation of N% of operating profit”—could spread across the broader industry. They say it could affect the automotive industry’s wage and collective bargaining agreement talks for2026. It is emphasized that automobiles are among South Korea’s top export items, ranked2.
Across the industry, there are1–3tier suppliers5,000or more. This has prompted concerns that, if the impact spreads, it could have a chain reaction reaching suppliers as well. The government is reviewing response measures in light of the potential impact across the industry.
Sources: 뉴시스 경제
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