Overview
- Unionised workers approved the government-mediated wage package in a six-day electronic vote that concluded on Wednesday, May 27, with about 62,616 of 65,593 eligible members voting and roughly 73.7% in favor.
- The agreement creates a 10-year special bonus scheme that allocates 10.5% of the semiconductor division’s operating profit to stock awards plus about 1.5% in cash, removes a previous 50% cap on performance pay, and staggers share tradability over two years.
- Payouts are conditional on steep profit milestones requiring the chip division to deliver more than 200 trillion won in annual operating profit from 2026–2028 and 100 trillion won annually from 2029–2035 for special bonuses to be paid.
- The ratification halted a planned 18-day strike by roughly 48,000 chip workers and pushed Samsung’s shares higher, but a smaller consumer-electronics union has filed for a court injunction and a minority-shareholder group is preparing challenges.
- Analysts and business groups warn the deal could prompt similar demands across South Korea, pose questions about allocating operating profit before taxes, and shift how AI-driven corporate gains are distributed in the country.