SK hynix Labor and Management Reportedly Reach New Agreement with Higher Cash Portion in Performance Bonus

According to Yonhap News Agency, citing industry insiders, SK hynix management and labor have reached a revised tentative agreement. The full-time (production) union held an emergency special general meeting to explain the details of the renegotiation to its members. The amendment adjusts the basic payment ratio for performance bonus from the existing 40% cash and 60% stock to 50% cash and 50% stock.

Specifically, the structure stipulates that 80% of the total performance compensation paid this year will be split equally between cash and stock at 50% each, while the remaining 20% will be deferred and paid in two installments in the form of stock, with 10% paid in the first year and 10% in the second year. Individual choice has also been expanded, allowing members to choose the stock weighting from a base of 50% up to a maximum of 100% in increments of 10 percentage points according to their own preferences. SK hynix also agreed to bear the additional cost incurred from stock price increases during the stock allocation process.

In order to minimize confusion caused by changes to the performance bonus payment method, SK hynix decided to pay the remaining deferred portion in advance, that is, to pay ahead of schedule the deferred portion of performance bonuses calculated based on last year's performance, which was originally scheduled to be paid next year and the year after. The original plan was to pay 80% of the performance bonus this year, with the remaining 20% to be paid over the next two years.

The housing loan system has also been partially supplemented. Previously, in addition to the existing basic assistance, eligibility for additional subsidies was limited to married families, while the revised plan includes single-parent families among the eligible beneficiaries.