With Samsung Electronics (005930.KS) having wrapped up its wage negotiations this year, the semiconductor industry's attention is again turning to SK hynix (000660.KS). The company's labor and management, which set off the so-called "N% of operating profit" bonus storm, will sit down at this year's wage negotiation table as early as June. In this year's SK hynix talks, the expansion of in-house benefits such as housing loans, along with the wage increase rate, is expected to emerge as the biggest point of contention.
According to industry sources Saturday, voices are growing within SK hynix calling for the company to benchmark the "housing stabilization loan," a welfare program tentatively agreed upon recently by Samsung Electronics' labor and management. Samsung Electronics decided to establish a program that lends up to 500 million won at an annual interest rate of 1.5% to employees who do not own homes. The repayment terms were also left flexible, including 10-year repayment or a three-year grace period followed by 10-year repayment.
By contrast, SK hynix's housing loan interest rate is currently the same at 1.5% per year, but the limit stops at a maximum of 100 million won. The grace period is also relatively short at one year (followed by 15 years of equal principal repayment). SK hynix employees are strongly demanding improved benefits, saying, "The limit should be raised to 500 million won like Samsung Electronics," and "Let's extend the grace period to five years and lower the interest rate further."
SK hynix has largely dispelled complaints related to bonuses through two rounds of reform in 2023 and last year. Last year, it abolished the cap on profit sharing (PS) and codified the funding source as "10% of operating profit." In 2023, it also changed the productivity incentive (PI), previously paid up to a maximum of 100% of base salary, to a differentiated payment of up to 150% linked to the operating profit margin. PI is a bonus program paid in the first and second halves of each year. Having cleared the major hurdle of bonuses, the company has no choice but to concentrate its efforts this year on expanding benefits and raising base salaries.
This year's wage increase rate is also expected to use Samsung Electronics' level (6.2%) as a key benchmark. The industry sees a high likelihood that SK hynix's labor and management will also steer negotiations toward practical gains rather than prolonged confrontation. "Now that the bonus system has settled in, the core of this round of negotiations will be tangible welfare benefits such as housing funds, fuel costs and communication costs, along with the wage increase rate," an industry official said.
Meanwhile, SK hynix operates under a multiple-union system, with the technical and office workers' union affiliated with the Korean Confederation of Trade Unions and the full-time workers' union of the Icheon and Cheongju plants affiliated with the Federation of Korean Trade Unions each set to conduct separate negotiations with management.
