Profit-linked bonuses at Samsung, SK unlikely to spread across Korean biz
The hefty profit-based performance bonuses at Samsung Electronics and SK hynix are unlikely to become a new norm among Korean businesses, as the government considers amending regulations to subject such bonus plans to shareholder approval. Speaking at a press forum on Thursday, Industry Minister Kim Jung-kwan said he “opposes linking employee incentives directly to a company’s operating profit,”…
The Korea Times reports that the hefty profit-based performance bonuses at Samsung Electronics and SK hynix are unlikely to become a new norm among Korean businesses. Industry Minister Kim Jung-kwan has expressed opposition to linking employee incentives directly to a company’s operating profit, stating that the government is discussing revisions to the Commercial Act and the Financial Investment Services and Capital Markets Act to require shareholder approval before paying such bonuses.
This comes as labor unions at large companies demand that a portion of operating profit be used to fund performance bonuses, with SK hynix already allocating 10 percent of operating profit for bonuses in response to its memory chip business's profits.
Brief written by urgent.news from The Korea Times's own syndicated text. Machine-written — it may contain errors, so check the original before relying on it.
