SK Hynix to Pay 60% of Performance Bonuses in Stock, Raise Wages 6.3%

Tentative Wage and Labor Deal Reached

SK Hynix Inc. and its labor union have reached a tentative wage and collective bargaining agreement under which 60% of performance bonuses would be paid in company stock rather than cash. Of that stock portion, 40% can be sold the day after receipt, while 20% will be subject to sale restrictions.

Industry officials said on August 20 that SK Hynix management and the union held an emergency temporary delegates' meeting that afternoon and unveiled the tentative agreement.

Under the proposal, 40% of the profit-sharing bonus, or PS, would be paid in cash and the remaining 60% in company shares. That stock-based portion consists of 40% in shares and 20% in deferred compensation. The 40% in shares can be sold without restrictions, while the deferred 20% cannot be sold freely.

SK Hynix and the union agreed last year to allocate 10% of annual operating profit to fund the PS bonus and to scrap the cap on those payouts. They also agreed to keep that system in place for 10 years. At the time, however, they did not specify how the bonuses would be paid.

The two sides also agreed to a 6.3% wage increase, an expansion of the existing pension program to as much as $290, broader shift-work allowances, more Hi-Well points under the company's employee welfare fund, expanded condolence and funeral support, and larger housing loan support.

The union held a delegates' meeting for employees at 2 p.m. on August 20 and presented the 2026 wage and collective bargaining plan. Delegates will vote after the meeting on whether to approve the tentative agreement.

Lee Seul-gi, Hankyung.com reporter seulkee@hankyung.com