Samsung Electronics' chip workers' union approved their bonus deal, easing worries about chip delays

Balloting ran from May 22 through Wednesday morning, with 95.5% participation among the 65,593 eligible members across the two unions. The unions reported that 62,616 votes were cast and that nearly three-quarters — 73.7% — came out in support, according to the Korea Herald. The two sides signed the wage agreement later Wednesday.

The compensation structure anchors around two components for chip employees: a cash bonus capped at 50% of annual salary, plus a separate pool funded by 10.5% of the chip division's operating profit, distributed as company shares, according to Reuters. Those shares vest in three equal tranches — one immediately upon issuance, one after twelve months, and the last after twenty-four months. The profit-linked payouts kick in only if Samsung clears 200 trillion won in annual chip operating profit between 2026 and 2028, with a lower threshold of 100 trillion won per year applying from 2029 through 2035.

Samsung stock surged 6% on Wednesday.

Negotiators, working under government mediation, finalized the agreement with barely an hour to spare before a planned 18-day walkout was scheduled to commence last Thursday, according to Reuters. Samsung accounts for roughly a quarter of South Korea's exports.

The agreement has drawn particular attention because of the scale of potential payouts in Samsung's memory chip division, which has seen profits rise on the back of global investment in artificial intelligence. For context on the sums involved, Reuters estimated that a memory division employee earning an 80-million-won base salary could take home around 626 million won in combined bonuses this year — still trailing the more than 700 million won that employees at competing chipmaker SK Hynix are positioned to receive.

The deal is not without internal friction. Employees in Samsung's consumer electronics divisions — which cover smartphones, home appliances, and televisions — are expected to receive significantly smaller payouts. The split was laid bare in the ballot results: among the 7,283 members of the National Samsung Electronics Union, which draws its membership largely from non-chip parts of the business, just 21.1% cast votes in favor, according to the Korea Herald. A separate third union, whose membership is concentrated in consumer electronics, announced plans to pursue legal action on the grounds that it was shut out of the entire voting process.

At the signing ceremony, Yeo Myeong-gu — who leads the People Team within Samsung's Device Solutions division — pledged that the agreement would mark a turning point, stating, "labor and management will work together as one to strengthen our global competitiveness." Samsung's top executives also issued a public apology, saying the dispute had caused concern to shareholders, customers, and employees. Samsung also announced plans to raise 5 trillion won over five years, earmarked for initiatives spanning supplier support, AI talent pipelines, youth education, and assistance for economically vulnerable communities.