SEOUL — The artificial intelligence boom has already transformed SK hynix into one of the biggest winners of the global semiconductor surge. Now, some of that extraordinary wealth could land in employees’ hands in a very different form.
The South Korean memory-chip giant has reached a preliminary agreement to pay 60% of its 2026 employee bonuses in company shares and the remaining 40% in cash, according to a person familiar with the negotiations cited by Reuters.
But despite the eye-catching numbers involved, the deal is not final yet.
Union delegates are still discussing the proposed agreement, meaning its terms could still face further scrutiny before becoming binding. SK hynix declined to comment on the reported agreement.
An Average Bonus Worth About US$547,000
The sheer size of the potential payouts shows just how dramatically the AI boom has changed the economics of the memory-chip business.
Based on Reuters calculations, SK hynix employees are on track to receive an average 2026 performance payout of approximately 779 million won, or about US$547,000 per worker.
That does not mean every employee will receive exactly that amount. Individual compensation can differ, and the figure is an estimated average derived from the company’s profit-sharing structure.
Last year, SK hynix and workers agreed on a system under which 10% of annual operating profit would be allocated for employee bonuses, with the arrangement intended to remain in effect for 10 years.
The problem emerged when management sought to change how that enormous bonus pool would actually be delivered.
Workers Initially Pushed Back Against Stock-Based Bonuses
Management had proposed paying more than half of the bonuses in SK hynix shares rather than entirely in cash.
Early versions of the proposal also included restrictions preventing workers from immediately selling some of those shares.
That sparked resistance from employees worried that a significant part of their compensation could become exposed to swings in SK hynix’s share price.
The union previously argued that employees should not be forced to assume the risk of stock-market volatility when their performance bonuses had been earned through the company’s operating results.
That concern was hardly theoretical.
SK hynix shares have experienced dramatic swings during 2026 as investors alternated between enthusiasm over AI-chip demand and fears that spending on artificial-intelligence infrastructure could eventually slow.
Reuters reported earlier this month that shares had risen more than 130% during the year at one point, but had also fallen sharply from their June peak.
The New Preliminary Deal Changes a Critical Detail
Under the tentative agreement now being discussed, 40% of the total bonus would be delivered in SK hynix shares in 2027.
Another 20% would be paid in shares across 2028 and 2029.
The remaining 40% would be paid in cash in 2027.
Crucially, the source cited by Reuters said the shares under this latest arrangement would not be subject to restrictions on when employees can sell them.
That is a significant difference from the earlier management proposal that helped trigger employee opposition.
For workers, however, receiving more compensation through shares still means their eventual gains — or losses — could partly depend on where SK hynix’s stock trades when they decide to sell.
The Fight Became Bigger Than Just Bonuses
The dispute has already contributed to wider labor unrest inside one of South Korea’s most strategically important companies.
In August, SK hynix workers launched a new unified labor union designed to bring together employees across different occupations and manufacturing sites.
Reuters reported that roughly 2,500 employees had joined the newly approved union at the time of its report, as frustration grew over stalled wage negotiations and the proposed restructuring of performance bonuses.
SK hynix employs nearly 35,000 workers in South Korea, according to Reuters.
Korean media have also reported that employees regarded the proposed changes as reopening a compensation formula that labor and management had only agreed to the previous year.
Why SK Hynix Can Afford Such Enormous Bonuses
Behind the labor battle is an extraordinary surge in semiconductor profits.
SK hynix has become one of the central suppliers of high-bandwidth memory, or HBM, the ultra-fast memory used alongside powerful processors in AI servers.
The company is also a major supplier to Nvidia, whose processors have become foundational hardware for the global AI infrastructure boom.
SK hynix said its second-quarter 2026 revenue reached a record 79.3 trillion won, while operating profit climbed to approximately 60.5 trillion won.
Revenue increased 257% from the same quarter a year earlier, while operating profit jumped 557%, according to the company’s July 29 earnings announcement.
SK hynix attributed the record performance to powerful demand for high-value memory products used in artificial-intelligence servers. It also said mass shipments of its next-generation HBM4 products began during the second quarter.
That extraordinary profitability helps explain why a formula allocating 10% of operating profit to employees can produce bonuses almost unimaginable in most industries.
Employees Aren’t the Only Ones Getting a Bigger Share
The bonus negotiations are unfolding alongside another enormous decision about what SK hynix should do with its growing cash pile.
On August 19, the company announced plans to repurchase and cancel 40 trillion won, or roughly US$28.6 billion, of treasury shares.
SK hynix also said it intends to return more than 50% of free cash flow generated between 2025 and 2027 to shareholders.
The announcement helped send SK hynix shares sharply higher on August 20, with CNA and Reuters reporting a roughly 13% jump.
That creates an unusual balancing act.
SK hynix is simultaneously trying to reward employees who helped generate record profits, satisfy shareholders demanding bigger returns, and preserve enough capital to fund the enormous factories, equipment and advanced packaging facilities required to remain competitive in the AI-chip race.
A Bigger Test for Korea’s AI Boom
The SK hynix dispute could have consequences well beyond one company.
Profit-linked bonuses at SK hynix and Samsung Electronics have already encouraged unions at other major South Korean companies to seek stronger connections between corporate profits and employee compensation.
The Korea Times reported that the trend has sparked debate over whether fixed profit-sharing arrangements could become more common — and whether exceptionally profitable semiconductor companies should be treated differently from businesses operating in less lucrative industries.
For SK hynix employees, however, the immediate question is simpler: how much of an extraordinary AI-era windfall should arrive as cash, and how much should remain tied to the fortunes of the company itself?
The preliminary 60%-stock agreement may finally provide a compromise.
But until the labor process is completed, one of the biggest employee bonus deals of the AI boom remains exactly that — a preliminary deal.
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