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Thanks to the semiconductor supercycle, Samsung Electronics has posted its best performance ever, and it will be sharing its profits with its staff and partner companies.

“To encourage the staff in our semiconductor division, which has posted the best profits ever, we have decided to distribute a special bonus worth 400% of basic pay on Nov. 23,” Samsung Electronics said on Nov. 22. There are more than 40,000 workers and executives in the company’s semiconductor division (officially called Device Solutions) who will receive this bonus. A section chief at Samsung Electronics with one year of experience and a basic monthly salary of 3 million won (US$2766) would receive a bonus of about 12 million won (US$11,067).

While Samsung Electronics’ mobile phone and home appliance divisions also had decent performance, they will not be receiving this special bonus. This has provoked some discontent inside the company, with some labeling the bonus “irregular.” The last time that the company gave its employees a special bonus was four years ago, in 2013, when all employees received one to commemorate “20 years of new management.” “With SK Hynix promising to pay a special bonus of 1200% this year, employees in the semiconductor division were upset that they weren’t being paid as much as their peers at SK Hynix. I was told that the special bonus is being given to prevent defections,” said a source at Samsung Electronics.

Samsung Electronics also agreed to share 65 billion won (US$59.95 million) with its semiconductor partner companies. It will be paying 50 billion won (US$46.11 million) in incentives to these partners and creating a 15 billion won (US$13.83 million) win-win fund for its partners through matching grants from semiconductor staff and companies. Part of the special bonus that will be received by staff at Samsung Electronics’ semiconductor division will be used to create this win-win fund. Samsung Electronics paid 20.17 billion won (US$18.55 million) in incentives to a total of 138 semiconductor partner companies in the first half of this year as well.

By Kim Jae-seop, staff reporter

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