Samsung Electronics, a key player in the global memory chip market, has significantly benefited from the surge in artificial intelligence (A.I.). The company’s position has sparked discussions about profit allocation.
For an extended period, employees at Samsung’s semiconductor division felt excluded from the global A.I. expansion. The increase in A.I. applications drove demand for computer memory chips, a sector dominated by Samsung and another South Korean company, SK Hynix. In response to this prosperous period, SK Hynix introduced new benefits in 2025, allocating 10 percent of its operating profit to worker bonuses and eliminating bonus caps.
Recently, Samsung’s largest labor union initiated similar demands during negotiations. They requested the company to dedicate 15 percent of its operating profit for performance bonuses specific to the semiconductor division, along with the removal of bonus caps.
Negotiations hit a critical point, nearly leading to a strike, which was avoided due to government mediation on Wednesday night. The tentative agreement reached abolished the bonus cap, and Samsung is expected to allocate 10.5 percent of profits for bonuses. In the first quarter of the year, the company’s profit reached $39 billion. The union is set to vote on finalizing this agreement by next Wednesday.
Although the agreement resolved the immediate issue, this event highlights an urgent question facing South Korea following its A.I. success: How should the resulting profits be distributed?