Business·Industry

SK Hynix Begins Wage Negotiations… Will Samsung’s ‘6% Raise’ Agreement Set the Standard?

"Wage and Collective Bargaining Agreement by June" Officially Announced at Cheongju Campus First Negotiations Since PS Restructuring… Discussions on Expanding Welfare KCTU and KCTU unions hold separate negotiations Kwak No-jeong: "Risk of Mistakes in the AI Era… We Must Prepare for the Next Phase of Growth"

[Edaily Reporter Song Jae-min] SK Hynix is set to begin wage and collective bargaining negotiations this month. As the company continues to post record-breaking earnings driven by the booming High Bandwidth Memory (HBM) market, wage increases and expanded employee benefits are expected to be key issues in this year’s negotiations. Industry observers suggest that the 6.2% wage increase recently agreed upon by Samsung Electronics’ management and labor union could effectively serve as a benchmark.

Kwak No-jeong, President and CEO of SK Hynix, delivers a presentation on AI memory at the “SK AI Summit 2025” held at the COEX Auditorium in Gangnam-gu, Seoul, last November. (Photo = Yonhap News)

According to industry sources on the 9th, SK Hynix stated at the “THE Communication Event” held the previous day at its Cheongju Campus in North Chungcheong Province, “Although the schedule for this year’s wage and collective bargaining negotiations is running late, we will ensure they are concluded by June.”

Although internal concerns have recently been raised that the negotiation schedule may be later than in previous years, the general sentiment both inside and outside the company is that this is not a major issue. An industry insider explained, “Negotiations have often started in late May or early June, or as late as late June,” adding, “This is due to the process of coordinating agenda items rather than any specific reason.”

The most closely watched aspect of these negotiations is the wage increase rate. Last month, Samsung Electronics’ management and labor union reached a tentative agreement that included an average wage increase of 6.2%, the establishment of a special performance-based bonus system for the semiconductor division, and improvements to welfare programs. The industry expects the SK Hynix union to draw on this agreement when formulating its demands.

SK Hynix’s Icheon headquarters. (Photo: Yonhap News)

The industry is leaning toward the possibility that this year’s negotiations will proceed relatively calmly. SK Hynix largely resolved the long-standing conflict over Profit Sharing (PS) payments by overhauling its performance bonus system last year. In fact, it is reported that the level of tension within the company is not as high as it was in the past.

Consequently, the prevailing view is that this year’s negotiations will focus more on wage increases and expanded welfare benefits rather than the performance-based pay system. At SK Hynix, which operates a multi-union system, the Technical and Clerical Workers’ Union—affiliated with the Korean Metal Workers’ Union under the Korean Confederation of Trade Unions (KCTU)—and the full-time union at the Icheon and Cheongju plants—affiliated with the Federation of Korean Trade Unions (FKTU)—are each set to participate in the negotiations.

Kwak No-jeong, President and CEO of SK Hynix, also emphasized the importance of labor-management relations at the event. “Labor-management difficulties have recently become a hot topic,” he said. “Let’s respond appropriately while considering various internal and external circumstances so that we can achieve even greater growth next year.” He continued, “Although the company is doing well now, if we look ahead 10 or 15 years, even a single mistake could lead to difficulties in the AI era,” and emphasized, “It is time to pool the wisdom and capabilities of all employees to prepare for our next phase of growth.”

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