By Hyunjoo Jin
SEOUL, Aug 20 (Reuters) – South Korean chipmaker SK Hynix has agreed to pay 60% of this year’s employee bonuses in shares and the remaining 40% in cash under a preliminary wage agreement, a person familiar with the matter said.
The agreement is being discussed by union delegates, said the person, who was not authorised to talk to media and declined to be identified.
Last year, SK Hynix agreed to share 10% of its annual operating profit with workers in the form of cash, under an agreement which would be in place for 10 years.
This year, however, management proposed paying more than half of bonuses in shares, with restrictions on selling for a set period — a plan that met with opposition from some workers spooked by the volatility of SK Hynix stocks.
SK Hynix declined to comment.
The AI boom has sent SK Hynix’s earnings soaring, leading to eye-popping bonuses for its employees. Its workers are set to receive an average payout of 779 million won ($547,000) for 2026, according to Reuters calculations.
Under the scheme, employees would receive shares equivalent to 40% of the total bonus in 2027, while the remaining 20% in stock will be deferred to 2028 and 2029, the source said, adding there were no restrictions on stock sales.
The remaining 40% would be paid in cash in 2027, the source added.
SK Hynix said on Wednesday that it will buy back and cancel 40 trillion won ($28.6 billion) of treasury shares and allocate more than 50% of free cash flow generated between 2025 and 2027 to boost shareholder returns.
That helped SK Hynix’s stock jump 13% on Thursday.
(Reporting by Hyunjoo Jin; Editing by Ed Davies and Edwina Gibbs)
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