Following the 'Eldest Brother' Samsung Electronics... Samsung Electro-Mechanics and Display Also Raise Wages by 9%

SK Hynix Also Forecasts 8-9% Wage Increase
LG Electronics and DB HiTek Also Raise Salaries Consecutively

[Image source=Yonhap News]

[Asia Economy Reporter Kim Jin-ho] Samsung Electro-Mechanics and Samsung Display have decided to raise employee wages by an average of 9% this year. This is the same level as Samsung Electronics, the 'eldest sibling' of the electronics affiliates.

According to the industry on the 14th, Samsung Electro-Mechanics and Samsung Display labor and management agreed on an average wage increase rate of 9% each this year. Specifically, this figure reflects a 5% increase in base salary plus a 4% increase in performance bonuses.

Both companies also established 3 days of paid leave through negotiations to improve employee welfare. Spousal maternity leave was also extended from the existing 10 days to 15 days. Additionally, it is reported that they agreed on various welfare improvements such as expanding resorts for employees.

In particular, Samsung Display conducted consultations with the labor-management council concurrently during the wage negotiations with the labor union. By concluding consultations around the same time, they finalized this year’s working conditions smoothly without labor disputes.

Earlier, Samsung Electronics also announced on the 29th of last month through the labor-management council that "the average wage increase rate for all employees in 2022 was decided to be 9%." Initially, the labor-management council demanded an increase rate of over 15% from management, but considering various internal and external economic conditions, they reached a consensus at a level close to double digits. This is 1.5 percentage points higher than last year’s 7.5%, which was the highest increase rate in the past 10 years.

With this agreement, wages can increase by up to 16.5% depending on individual evaluations. The first-year salary for new college graduates is also expected to rise to around 51.5 million KRW.

SK Hynix, which has not yet finalized this year’s wage increase rate, is also likely to adopt an increase rate of around 8-9%. This is because the competition to secure semiconductor personnel between Samsung Electronics and SK Hynix is fierce amid limited semiconductor workforce. SK Hynix already set last year’s increase rate at 8.07%, double that of the previous year. Accordingly, the starting salary for new employees at that time was adjusted to 50.4 million KRW, higher than Samsung Electronics.

Foundry (semiconductor contract manufacturing) company DB HiTek recently raised the starting annual salary for employees from 42 million KRW to 48 million KRW, a 14.29% increase, drawing attention. LG Electronics also agreed last month on an average wage increase rate of 8.2% for 2022. As a result, this year’s starting salary for new employees at LG Electronics rose by about 3 million KRW to 49 million KRW compared to last year.