SK Hynix stock bonus wage deal

SK Hynix, a South Korean chipmaker, has reached a preliminary wage agreement to pay 60% of employee bonuses in company shares and 40% in cash, according to a source familiar with the matter. The agreement, subject to union member approval, would see employees receive shares equivalent to 40% of the total bonus in 2027, with the remaining 20% in stock deferred to 2028 and 2029, with no restrictions on stock sales. The cash portion would be paid in 2027. This comes amid an AI-driven earnings boom, with workers set to receive an average payout of 779 million won ($547,000) for 2026. The proposal to pay more than half of bonuses in shares faced opposition from some workers concerned about stock volatility. Separately, SK Hynix announced a 40 trillion won ($28.6 billion) share buyback and cancellation plan, allocating more than 50% of free cash flow from 2025-2027 to shareholder returns, which helped its stock jump 13% on August 20.