SK Hynix Union Rejects Wage Deal Over Stock Bonuses

Union members at SK Hynix narrowly rejected a tentative wage agreement on August 25, 2026. Of the 15,045 workers who voted, 50.08% opposed the deal, which proposed a 6.3% wage increase and a revised profit-sharing scheme.

The rejected proposal would have distributed bonuses as 40% cash and 60% company shares. Workers opposed the stock-based payments, citing concerns over share price volatility. The production workers' union is expected to resume negotiations with management to secure more cash-based compensation.

This labor dispute occurs as the memory chip industry gains significant leverage over AI hardware providers like Nvidia Corp. Surging demand for high-bandwidth memory (HBM) chips has increased the market power of major manufacturers, including SK Hynix, Samsung Electronics, and Micron Technology.