Despite a KRW 600 Million Bonus, Samsung Employees Say "Ready to Leave" and "Everyone’s Applying to SK Hynix"
"Agreement Approved, But Many Have Already Checked Out... Considering Leaving the Company"
While the tentative wage negotiation agreement reached between Samsung Electronics labor and management has eased surface-level conflict, the internal atmosphere remains tense. In particular, dissatisfaction over differences in performance bonuses has been building, leading some employees to consider leaving the company.
On May 26, an anonymous post appeared on a workplace community forum titled, "My boyfriend is a seventh-year engineer in Samsung Electronics' foundry (semiconductor contract manufacturing)." The author, referred to as A, wrote, "My boyfriend says he's lost all motivation at work because of the performance bonus issue. He's considering moving to SK hynix." A went on to ask, "Are there really a lot of people like this inside Samsung Electronics right now?"
A continued, "No matter what my boyfriend does or where he works, I support him, but I'm curious about whether changing jobs is really feasible. He has built up a career—would it be better to stay? He seems to be struggling with the decision."
Even After Bonus Dispute Eased... "We've Already Checked Out," Say Samsung Electronics Employees
Samsung Electronics employees who read the post each shared their impressions of the internal atmosphere. Employee B commented, "That mood is spreading like an epidemic right now. Even in the memory division, it's the same." When asked, "Isn't the memory division getting huge bonuses? Why is the mood like this?" B explained, "It's partly because the bonuses are paid in stock, and because SK hynix employees receive so much more. But above all, the biggest reason is how the company treats its employees."
Employee C also commented, "Everyone in the memory division is preparing to leave, too. Please cheer us on. Even though the agreement passed, many people have already checked out mentally. In fact, because SK hynix is better, whenever they post openings, everyone applies, and if they get in, they leave—it's pretty much expected." Other employees echoed these sentiments, saying, "It's true that morale is down," and "If you can leave, you should."
"600 Million for Semiconductors? We Get 6 Million"... Internal Disputes Remain
The tentative agreement includes a special management performance bonus for the Device Solutions (DS) division, in addition to the existing Over-Profit Incentive (OPI). This bonus is funded by a set percentage of operating profit and is paid entirely in company stock.
On the 20th, at the Gyeonggi Employment and Labor Office in Jangan District, Suwon City, Gyeonggi Province, Yeomyeong-gu, Head of People Team at Samsung Electronics DS (Device Solutions - semiconductor business), and Choi Seungho, Chairman of Samsung Electronics Branch of the Samsung Group Super Corporate Labor Union, shook hands after signing a tentative agreement following Samsung Electronics wage negotiations. Photo by Yonhap News.
View original imageHowever, the anticipated payout varies significantly by business unit, which has become another source of controversy. If Samsung Electronics' operating profit is assumed to be 300 trillion won this year, employees in the memory division could receive a special management performance bonus worth about 550 million won (pre-tax, based on a 100 million won annual salary) paid in company stock, plus an OPI capped at 50% of their annual salary, or 50 million won, for a total of 600 million won.
For the foundry (semiconductor contract manufacturing) and System LSI divisions, the total expected payout is 210 million won, combining a special management performance bonus of 160 million won and an OPI of 50 million won. In contrast, employees in the Device eXperience (DX) division are likely to receive only company stock worth about 6 million won.
Hot Picks Today
"What Will Retail Investors Do With No Ammo Left?... Samsung Electronics and SK Hynix See Another Rosy Outlook"
- "Switching from Stocks to Savings?"... Up to 19.4% Annual Interest Rate Offered from June 22
- [Exclusive] Bought for 16.6 Billion Won from Kang Hodong, Sold to Noh Hongchul for 15.2 Billion Won: Even Hotspots Become Loss Sales... Gangnam Small Buildings Face 'Tearful Discounts' [Real Estate AtoZ]
- "My Stocks Alone Crashing in a Bull Market? Turns Out... 82% Are in the Same Boat"
- Trump Urged "Buy Quickly"...Stock Soared 39% Overnight
Industry observers note that this atmosphere could translate into actual staff departures. As the semiconductor market recovers and competition for talent intensifies, dissatisfaction with compensation and corporate culture can quickly lead to decisions to leave. In particular, more employees are reportedly considering moves to competitors such as SK hynix, which could pose a future talent outflow risk for Samsung Electronics.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.