Chey Says SK Hynix Bonus Dispute Isn’t Yet a Problem for Everyone

‘It would be a real problem if everyone hated it’

‘Excess-profit sharing is still unclear as a concept’

Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry, said the bonus dispute at SK Hynix would be a serious problem if everyone disliked it, but added that he does not see it that way and wants to watch the situation further.

Speaking at a press briefing on the sidelines of the KCCI Jeju Forum in Jeju on July 18, Chey said he wants to give employees as much happiness as possible, but with one condition: that happiness must be shared with stakeholders. If employees’ happiness infringes on stakeholders, that issue must be addressed to ensure sustainable happiness, he said.

He added that some people who do not work at SK Hynix also view the matter positively. He said the controversy may also have positive effects.

Addressing criticism that government influence may be shaping the selection of a site for a new semiconductor cluster, Chey said the company is continuing to assess whether conditions are sufficient. He added that it has not found another location in South Korea that fully meets the country’s needs. Infrastructure must be provided by the central government or local authorities, he said, and the company’s position is simple: if that support is provided, it will build there.

On applying an exception to South Korea’s 52-hour workweek cap to speed up the semiconductor push, Chey said he had heard authorities were reviewing a grace period for the rule if companies move to a mega special zone outside the capital region. Employers would still have to comply with the 52-hour limit, but if workers want to work more, they should be allowed to do so, he said. He added that he hopes free will is respected.

Chey also stressed the need to improve regulations to support economic growth. Asked about inheritance tax reform, he said the problem goes beyond inheritance taxes. South Korea still operates under systems built for an era of rapid growth even though the country has entered a period of low growth, he said. While policymakers say growth is needed, there are not many systems in place that help growing companies, he added.

He said the country remains stuck in a framework in which small businesses must be helped, the poor must receive support and the wealthy must pay more taxes. Small and midsize companies and mid-sized firms no longer want to grow bigger, he said. If companies decide growth is unnecessary, he asked, where will the motivation and engine for growth come from?

South Korea is supposed to run on democracy as its political system and capitalism as its economic system, Chey said. But if growth falters and one wheel stops turning, democracy also runs into trouble. To get both wheels working properly again, the country needs to return to growth-focused policies, he said, adding that growth would also create more room to address distribution issues.

On a proposal from the Ministry of Employment and Labor to distribute excess profits generated by artificial intelligence, Chey said he had no reason to object if the government decides how to use tax revenue companies pay. But he said he is not sure whether excess-profit sharing is the direction companies have in mind when trying to make stakeholders happier. He added that the concept remains unclear to him.

On the crisis facing South Korea’s manufacturing sector, Chey said AI has not suddenly transformed manufacturing enough to uncover a new path to survival. “The crisis is continuing,” he said. Demand has increased because the industry has ridden the AI trend, not because manufacturing competitiveness has improved, he said. Companies are making more money because the market has expanded. He added that there are still no signs that AI has raised productivity or produced better products. Plans for physical AI have been drawn up, he said, but few of the underlying challenges have been resolved.

Asked which project stood out most during his term, which ends in March 2027, Chey pointed to his work supporting the APEC leaders’ meeting last year as chair of the APEC CEO Summit. The biggest disappointment, he said, was Busan’s failed bid to host the World Expo. He added that he worked extremely hard, but some things simply do not work out.

On SK Hynix’s brief rise above Samsung Electronics to become South Korea’s most valuable listed company excluding preferred shares, Chey said one thing the country needs to fix is its habit of focusing on who is No. 1 and No. 2. He said he felt nothing in particular about the ranking. Stock prices go up and down, he added.

Park Su-bin, Hankyung.com reporter waterbean@hankyung.com