NSEU: “Employees Should Be Allowed to Choose Whether to Transfer Management Performance Bonuses to DC Plans or IRP Accounts”

[Financial News] The National Samsung Electronics Union (NSEU) urged Samsung Electronics to introduce a system allowing employees to choose whether to transfer management performance bonuses into retirement pension or individual retirement pension accounts.
The NSEU issued a statement on the 15th, asking the company to establish a system that would allow bonuses such as the Overall Performance Incentive (OPI) and Target Achievement Incentive (TAI) to be transferred into defined-contribution (DC) retirement pension plans or individual retirement pension (IRP) accounts.
The union argued that employees should be informed in advance of the estimated earned-income tax on their bonuses and allowed to choose whichever is more advantageous to them: receiving the money in cash or transferring it to a pension account.
The NSEU described the proposal as a “cost-free” labor-management cooperation system requiring almost no additional expense from the company. It added, “Major companies such as SK hynix and LG Electronics have already been operating this system stably for years through labor-management agreements.”
It continued, “Amid fierce competition for talent, there is no reason for a global No. 1 company to leave a system that lags behind those of other companies unattended, citing inadequate systems and other reasons.”
Samsung Electronics has so far paid management performance bonuses in cash or company shares. 
The DC retirement pension sought by the NSEU involves the company depositing bonuses into employees’ retirement pension accounts. When bonuses are received through a DC account, the point at which earned-income tax is imposed is deferred until the pension is received, which relatively lowers the applicable tax rate. An IRP is a retirement pension account that individuals manage directly after receiving bonuses as earned income. Contributions of up to KRW 9 million per year, including pension savings, are eligible for a tax credit.
The NSEU said, “We are ready to cooperate at any time in promptly establishing the system and holding practical discussions,” adding, “We urge the company to make a responsible and forward-looking decision.”
It also emphasized, “We have no intention whatsoever of joining a mudslinging fight by throwing stones at other unions or responding with a wasteful war of slander,” adding, “We will remain steadfast in focusing all our capabilities on substantive preparations for the upcoming 2027 negotiations.”

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