[Edaily Reporter Choi Oh-hyun ] SamsungElectronics will pay a special management performance bonus to employees in its Semiconductor (DS) division in late March or early April of next year. The special performance bonus is scheduled to be paid in the form of company stock after tax and other deductions, following approval at next year’s annual shareholders’ meeting.

According to industry sources on the 7th, SamsungElectronics’ DS division announced internal details that afternoon regarding the timing of the special management performance bonus, the criteria for calculating the amount, the method of distribution via company stock, and tax payments.

According to the details, assuming SamsungElectronics’ annual operating profit reaches 370 trillion won this year, DS Division employees earning an annual salary of 80 million won are estimated to receive a special management performance bonus ranging from approximately 240 million won to as much as 750 million won per person, depending on their performance evaluation. This figure is on a pre-tax basis, including the existing excess profit incentive (OPI) of up to 40 million won. The OPI is capped at 50% of annual salary; for an employee with an annual salary of 100 million won, the performance bonus could amount to approximately 950 million won.

The actual payment amount is expected to decrease after taxes and other deductions. SamsungElectronics has decided to withhold taxes at a flat rate of 49.5%—comprising the top income tax rate of 45% plus local income tax—before distributing the performance bonuses. This measure is intended to minimize the imposition of additional taxes during the year-end tax settlement process. The taxable year is set as 2027, when the performance bonuses are actually paid.

The performance bonuses will be paid entirely in the form of company stock after deducting taxes, insurance premiums, and charitable contributions. One-third of the received company stock may be sold immediately, while the remaining portion is subject to a one-year and a two-year lock-up period, respectively. Employees on leave will receive a pro-rated payment based on their period of service, and probationary employees are excluded from eligibility.

During wage negotiations last May, SamsungElectronics’ management and labor union agreed to establish a special management performance bonus for the DS Division, separate from the existing OPI. The special management performance bonus is funded by 10.5% of the DS Division’s operating profit, with no separate cap on the amount paid.

Forty percent of the performance bonus fund will be allocated first to all DS Division employees, while the remaining 60% will be distributed differentially based on the performance of each business unit, including Memory, System LSI, Foundry, and R&D. Consequently, the amount of performance bonuses received by employees is expected to vary significantly depending on their assigned business unit. The payment rates for each business unit will be announced in February of next year. The payment rates will be determined based on the organization to which the employee has belonged the longest within the DS Division this year.

The special management performance bonus will be submitted as an agenda item at next March’s annual general meeting of shareholders and is scheduled to be paid in late March or early April following approval. This is interpreted as a move to formalize the procedure to ensure payment can be made after the shareholders’ meeting, rather than out of concern that the proposal might actually be rejected.

Management and labor are also promoting a joint donation initiative linked to the special management performance bonus. DS Division employees may voluntarily donate between 0.2% and 1.0% of their special management performance bonus, and the company will contribute an additional amount equal to the employees’ donations through a 1:1 matching program. Specific details, such as the recipient organizations and operational procedures, will be further discussed between management and labor.

Choi Seung-ho, chairman of the Chogye Union, stated, “The union chairman and executive board will lead by example in participating in the donation pledge and will encourage union members to participate as well,” adding, “We will continue to consult with management regarding the recipient organizations and operational details.”