Samsung Electronics has announced that the "special management performance bonus" for its semiconductor business will be paid between late March and early April next year. Following the labor-management agreement to establish this system last May, the company has finalized details regarding the timing and stock payment method. Additionally, a joint donation agreement is being pursued, wherein if employees voluntarily donate a portion of their performance bonuses, the company will match the amount. However, remaining differences in compensation demands across business units and approaches to upcoming collective bargaining will require further coordination.

According to industry sources on the 7th, Samsung Electronics' Device Solutions (DS) division notified employees of the detailed criteria for the 2026 special management performance bonuses through an internal announcement. The payment timing is set for late March to early April, following the company's regular annual general meeting of shareholders. The payment rates for individual business units within the DS division are scheduled to be announced next February.

Individual bonuses will be calculated by multiplying a base amount by the special performance bonus payment rate. The payment rate will be based on the organization to which the employee belonged for the longest period this year. After deducting taxes (including local taxes of 49.5%) and insurance premiums, the bonuses will be paid out in Samsung Electronics treasury stock. The number of shares will be calculated based on the stock price on the payment date. One-third of the granted shares can be sold immediately, while selling restrictions apply to the remainder.

The special management performance bonus is funded by 10.5% of the DS division's operating profit for this year. Of this fund, 40% will be allocated evenly across the entire DS division, while 60% will be distributed based on the performance of individual business units. The Inter-Company Labor Union estimated that for a Memory Business employee earning in the early 80 million won range, pre-tax performance bonuses including the Overall Performance Incentive (OPI) would amount to approximately 750 million won (Note: corrected context phrasing from source estimation context).

On the same day, the Samsung Electronics Chapter of the Samsung Group Inter-Company Labor Union announced its plan to pursue a labor-management joint donation agreement linked to the performance bonuses. Under this 1:1 matching scheme, employees can voluntarily donate between 0.2% and 1% of their special management performance bonus, and the company will match the exact same amount.

Choi Seung-ho, head of the Samsung Electronics Chapter of the Inter-Company Labor Union, stated that union leaders and executives will participate first to encourage union members to join. "We will continue to discuss recipient organizations and operation methods with management," Choi said, adding, "We recognize our social responsibility and will continue various social contribution activities."

Although the payment criteria have been specified, differences of opinion regarding compensation gaps between business units still remain. Furthermore, labor unions are split on the negotiation format to reflect each member's demands in future talks. The DS-centric Inter-Company Labor Union maintains its policy of keeping a single bargaining system for next year's wage negotiations. Conversely, the Device Experience (DX)-centric Companion Union and the National Samsung Electronics Union—which encompasses both DS and DX—are demanding joint negotiations.

In a parliamentary audit by the National Assembly's Trade, Industry, Energy, SMEs, and Startups Committee the previous day, union leader Choi stated that next year's negotiations will be prepared while considering the contributions of other business units, the public, and partner companies. As he signaled that preparing for next year's wage and collective agreements is a top priority, attention is focused on how these positions will be reflected in compensation demands and bargaining methods.

With the detailed criteria for the DS special performance bonuses now established, compensation demands from other business units are expected to become even more pronounced. Moving forward, how well the Inter-Company Labor Union balances performance-based compensation while accommodating the demands of other business units is expected to significantly impact inter-union discussions and management's response.

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