A bonus agreement at Samsung Electronics, which will pay up to 600 million won per person, is shaking up wage systems across the business community. Demands are spreading rapidly not only among unions at major domestic conglomerates, but even among subcontracted labor unions, for workers to share in their parent companies’ operating profits. The so-called demand for distributing bonuses as a percentage of operating profit is gaining traction. After SK hynix, the country’s No. 2 company by market capitalization in the second half of last year, Samsung Electronics, the No. 1 company in both market value and the business world, also reached a deal with its labor union to pay bonuses of up to 600 million won per employee. Analysts say this suggests that bonus systems tied to a percentage of operating profit are becoming a new model for distribution in industry. At the same time, concerns are growing that Korea’s industrial structure is becoming more high-cost, driven by the expansion of ordinary wages and surging labor expenses. Social conflict is also intensifying, with widening wage gaps and concerns over shareholder rights. On the 21st, the two major umbrella unions criticized the Samsung Electronics bonus deal, saying that "there can be no monopolizing of achievements," and called for practical measures so that subcontracted workers and others can also share in the gains. In a statement that day, the Korean Confederation of Trade Unions (KCTU) said, "Samsung’s global achievements are not the exclusive property of regular employees at large companies," adding that they are the result of "social total labor" combining the work of non-regular workers at subcontractors and partner firms, who endured risk and poor conditions, with local infrastructure. The Federation of Korean Trade Unions (FKTU) also argued that "the achievements of large companies should not remain inside the parent company," and said practical steps must follow, including improvements to subcontracting price structures and sharing technology and production gains, so that partner-firm workers can also receive a fair share of the benefits. After SK hynix and now Samsung Electronics agreed to introduce a bonus system linked to business performance, unions at Kakao, LG Uplus, Hyundai Motor Company and HD Hyundai Heavy Industries are making similar demands. Some view the move as a way to strengthen compensation and secure top talent, but the prevailing criticism is that the amounts are socially difficult to justify. Moreover, both SK hynix and Samsung Electronics agreed to maintain this type of bonus system for 10 years, raising concerns that it will accelerate a high-cost industrial structure. Cheong Wa Dae senior spokesperson Kang Yoo-jung said the impact of Samsung Electronics’ bonus deal on this year’s wage negotiations across industry is significant, noting that "the effect of this conflict on the national economy is enormous." She added, "The government intends to actively support labor-management negotiations so they can be adjusted in a reasonable direction." Meanwhile, shareholders say this kind of bonus distribution infringes on shareholder rights and that they are prepared to pursue legal action. Shareholder groups, including the Samsung Electronics Shareholder Action Headquarters, issued a protest statement saying that an N% bonus for executives and employees is directly tied to the distribution of company profits and therefore cannot be decided by labor-management agreement alone. ehcho@fnnews.com Jo Eun-hyo Choi Jong-geun Reporter