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South Korean labour unions push for higher payouts after Samsung’s US$400,000 bonus

South Korean labour unions across multiple industries are pushing for higher bonus payouts after Samsung Electronics agreed to bonuses exceeding US$400,000 for some employees amid the AI boom. Hyundai Motor workers staged a three-day partial strike seeking up to 30% of consolidated profit for bonuses, while unions at HD Hyundai Heavy Industries, LG Uplus, Kakao, and Naver are demanding similar or higher profit-sharing ratios. The trend, sparked by profit-sharing demands at Samsung and SK Hynix, is spreading to non-AI sectors, highlighting militant unionism risks for investors.

read1 min views1 publishedJul 23, 2026
South Korean labour unions push for higher payouts after Samsung’s US$400,000 bonus
Image: Scmp (auto-discovered)

What began with workers calling for Samsung and SK Hynix to share profits reaped from the AI boom is spilling over to other industries

[South Korea](https://www.scmp.com/topics/south-korea?module=inline&pgtype=article)after

[Samsung Electronics](https://www.scmp.com/topics/samsung-electronics?module=inline&pgtype=article)caved in to

protestsand agreed to hand out bonuses of more than US$400,000 to some of its employees.

Hyundai Motorstaged a three-day partial strike as they seek up to 30 per cent of consolidated profit to be set aside for bonuses.

Meanwhile, unions at HD Hyundai Heavy Industries and telecoms operator LG Uplus want payouts equivalent to at least 30 per cent of operating profit, while workers at Hanwha Aerospace and HD Hyundai Electric want to scrap bonus caps altogether.

In tech, thousands of employees at Kakao, which operates South Korea’s largest messaging service, went on strike for the first time last month, demanding that up to 15 per cent of operating profit be allocated for bonuses. The union at Naver, the country’s top search engine provider, is forming a coalition with counterparts at multiple affiliates to strengthen their negotiating power.

artificial intelligenceboom is spilling over to industries that have little to do with AI. It is a reminder of the risks investors face in a country that has historically had one of the most militant labour union presences in the region.

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