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South Korea’s K-shaped economy where chip giants give out $1 million bonuses to staff

Barnsley

Well-known member
https://www.straitstimes.com/busine...ip-giants-give-out-1-million-bonuses-to-staff

SEOUL - In South Korea’s booming chip sector, bonuses that bullish forecasts suggest could soon approach US$900,000 (S$1.15 million) are deepening concerns over widening inequality.

At SK Hynix, one-off payouts tied to the artificial intelligence boom are forecast to swell to multiples of earnings in traditionally high-income professions. The windfall illustrates the Bank of Korea’s concern that the tech bonanza will skew the economy “K-shaped” – where a few workers vault ahead while the rest languish on a downward slope.

It’s a phenomenon that was on display on April 23 in Seoul, when SK Hynix reported a fivefold jump in quarterly operating profit to a record 37.61 trillion won (S$32.4 billion). Less than half an hour later, the BOK said gross domestic product surged 1.7 per cent in the first quarter, led by tech exports, topping even the most bullish economist forecasts.
 
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PYEONGTAEK, South Korea - Tens of thousands of Samsung Electronics workers rallied at a sprawling factory complex south of Seoul on April 23, venting their anger over compensation levels ahead of a planned lengthy strike that could disrupt AI chip production.

Union organisers put the number of protesters at 40,000, making the demonstration the largest to date for Samsung, which has long been known for its union-busting tactics but saw workers walk out for the ⁠first time in 2024.

Should their demands not be met, they plan to strike for 18 days from May 21. That could delay shipments to customers, push up chip prices further and benefit rivals.
 
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