[비즈한국] Samsung Electronics' management and labor union reached a tentative agreement on the night before a planned general strike, finalizing a compensation plan that sets 10.5% of business performance as the fixed funding source for performance bonuses, effectively averting a strike. If the tentative agreement is approved by a union vote, employees in the Semiconductor (DS) division are expected to receive bonuses of up to 600 million won each this year (pre-tax, based on a 100 million won annual salary). Even the non-memory division, which is facing an expected operating loss this year, will receive at least 160 million won in bonuses. The agreement was reached through government mediation amid concerns over potential economic damages, including losses of up to 100 trillion won and damage to the semiconductor ecosystem and supply chain.
Establishment of 'Special Management Performance Bonus' in DS Division
Samsung Electronics' management and labor reached and signed a tentative agreement for the 2026 wage negotiations at the Ministry of Employment and Labor's Gyeonggi Regional Office in Suwon around 10:40 p.m. on the 20th. According to the agreement, both parties decided to maintain the existing Overall Profit Incentive (OPI) system while establishing a new special management performance bonus for the DS division.
The newly established special management performance bonus will be funded by 10.5% of the business performance determined by both sides, with no ceiling on the payment rate. The funding will be split 40% at the division level and 60% at the business unit level, with common organizations receiving 70% of the payment rate applied to the Memory business unit.
Considering that Samsung Electronics' projected operating profit for this year is around 300 trillion won, the funding for the DS division's special management performance bonus reaches approximately 31.5 trillion won. If the business performance agreed upon by labor and management is tied to operating profit, each employee could receive up to approximately 540 million won in company shares as a bonus.
Of this, about 40% (approximately 12.6 trillion won) will be distributed among all 78,000 employees in the DS division. Consequently, regardless of whether they are in the memory, non-memory, or common organizational units, each employee is guaranteed a bonus of approximately 160 million won. However, for loss-making business units, starting in 2027, bonuses will be differentially paid at 60% of the common payment rate calculated based on the division's funds.
Furthermore, the remaining 60% (approximately 18.9 trillion won) distributed to each business unit will be allocated at a 1:0.7 ratio between the Memory business unit (approx. 28,000 employees) and common organizations within the DS division (30,000 employees). Based on this, it is estimated that the Memory unit will receive approximately 380 million won per person, and common organizations will receive approximately 270 million won.
In the case of the Memory business unit, employees will receive an additional 50 million won (based on a 100 million won annual salary) according to the existing OPI, bringing the total bonus to 600 million won per person. However, loss-making business units might not receive the OPI.
These figures are based on the assumption that business performance is calculated as operating profit. The actual payment amount may vary depending on the final determination of the business performance calculation criteria and the final actual financial results.
Payment in Company Shares and Linkage to Operating Profit
The special management performance bonus will be paid in full, post-tax, in the form of company shares according to conditions set by the company. One-third of the granted shares can be sold immediately, while the remaining two-thirds are subject to a lock-up period of one year and two years, respectively. For loss-making units, the payment rate will be 60% of the common payment rate calculated from division funds, with the application deferred by one year to start from 2027.
The DS division's special management performance bonus will be in effect for the next 10 years, contingent upon achieving an annual DS division operating profit of 200 trillion won from 2026 to 2028, and 100 trillion won annually from 2029 to 2035.
The average wage increase for this year was set at 6.2%, combining a 4.1% basic increase and a 2.1% performance-based increase. The agreement also includes plans for a company housing loan program and increased childbirth grants. Childbirth grants will be raised to 1 million won for the first child, 2 million won for the second, and 5 million won for the third or more.
In the spirit of mutual cooperation, labor and management also agreed to provide company shares worth 6 million won to the DX (Device eXperience) division and the CSS business team, and announced plans to soon disclose details on creating and managing funds for shared growth with partner companies.
Management stated, 'The reason we were able to reach an agreement, albeit belatedly, is thanks to the support of the public, shareholders, and customers, the dedicated mediation of the government, and our employees who remained at their posts,' adding, 'We will do our best to contribute further to the national economy by fulfilling our role and responsibility as a company.' Choi Seung-ho, head of the Samsung Electronics branch of the Samsung Group Super-Corporate Labor Union, said, 'We apologize to the public for causing concern due to our internal conflicts,' and added, 'We will take the results of the tentative agreement vote as our report card and strive to become a better labor union.'
Minister of Employment and Labor Kim Moon-soo, who presided over the negotiations, stated, 'I deeply thank both sides on behalf of the government for not letting go of the thread of dialogue until the end and reaching a tentative agreement through autonomous labor-management negotiations.'
With the reaching of this tentative agreement, the general strike scheduled for the 21st has been suspended. However, this agreement is not yet finalized. The labor union will conduct a vote among its members on the tentative agreement from 2:00 p.m. on the 22nd to 10:00 a.m. on the 27th. If it receives a majority of votes, the wage agreement will be finalized.