As demands for "performance bonuses equal to N% of operating profit" spread across the labor sector following a bonus dispute between Samsung Electronics and its union, Industry Minister Kim Jung-kwan made clear his opposition, saying "it is not appropriate for bonuses to become a subject of labor disputes."
Meeting with reporters at the Government Complex Sejong on Saturday afternoon, Kim said, "From the labor sector's perspective, bonuses are expected to be made an issue in some way, but I see this as a legal gap."
Kim also argued that investors should participate in labor-management discussions on bonuses and that investors should be compensated as well. "Those who contributed to the company's operating profit are not only management and the union; investors should not be overlooked," Kim said. "Moreover, if you look at the back end of operating profit, workers entered with the basic premise of a guaranteed salary, while investors entered prepared to bear losses."
Kim continued, "Because the risks for workers and investors are entirely different, compensation for investors who take risks should clearly be different from that for unions and management." He stressed, "This is ultimately an issue tied not only to current investors but also to domestic and foreign investors who wish to invest in the future."
He added, "Whether through the Commercial Act or the Capital Markets Act, I believe a mechanism from the investor's perspective is needed in some form." Kim said, "Under the current discussion framework, there is no room for investors or shareholders to participate, so institutional improvements in this regard are necessary."
