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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Labor-related costs are emerging as a key downside risk to record earnings expected from the “memory supercycle” at Samsung Electronics and SK hynix, according to analysts.
Brokerages warn that union demands for bonuses equivalent to 10–15% of operating profit could significantly reduce profitability and limit funds available for investment and shareholder returns.
LS Securities estimated SK hynix’s first-quarter operating profit at KRW 35.6 trillion, below broader market expectations, after factoring in bonus-related costs. Annual profit estimates were also adjusted downward to reflect similar payouts.
SK hynix recently introduced a new profit-sharing scheme allocating 10% of operating profit as bonuses, replacing its previous cap.
At Samsung Electronics, labor tensions are intensifying as unions demand bonuses equivalent to 15% of operating profit and plan a large-scale strike starting in late May.
Analysts caution that even partial acceptance of such demands could weaken profitability and reduce shareholder returns. Market concerns are also rising over potential stock volatility linked to labor actions, particularly as strike participation is expected to exceed previous levels.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
