SK Hynix union finalising preliminary wage deal- Reuters

South Korean labor union for SK Hynix is finalizing a preliminary wage agreement with the company's management, according to Reuters. The union is set to present the terms to its members this afternoon, as both parties strive to resolve remaining differences and finalize the deal. SK Hynix previously committed to distributing 10% of its annual operating profit to workers in cash over a decade in 2025.

This year, the company proposed paying a larger portion of bonuses in shares, with restrictions on the workers' ability to sell them, which the union found contentious. The negotiations come as concerns rise about how memory chip companies, including SK Hynix and Samsung, intend to distribute profits stemming from artificial intelligence-related growth.

Samsung had reached a similar agreement with a major labor union earlier this year, mediated by the government.