In recent ordinary wage lawsuits involving Korea Hydro & Nuclear Power (KHNP) and city bus workers, the Supreme Court seemed to acknowledge the ordinary wage nature of bonuses, yet still demanded complex calculations for the detailed criteria. It’s necessary to take a closer look at what has changed and what still remains a source of controversy.

Supreme Court’s Criteria for Recognizing Bonuses as Ordinary Wages: What Has Changed?

In 2026, the Supreme Court presented important criteria in its ordinary wage rulings. Specifically, it ruled that even bonuses with a ‘condition of employment on the payment date’ are considered ordinary wages if they are paid regularly and uniformly as compensation for labor. This marks a significant change compared to the past, where the ‘condition of employment’ was a primary reason for denying ordinary wage status. In fact, this ruling means many companies will have to re-evaluate their wage systems.

• Reinterpretation of the employment condition: The court viewed the condition of being employed on the payment date to receive a bonus as merely a ‘settlement method’ for salary payment, not a condition that negates its nature as compensation for labor.
• Regular and uniform payment: If a bonus is paid regularly and uniformly to all employees according to a consistent standard, regardless of a specific period, it is recognized as an ordinary wage.
• Recognition of city bus bonuses: A ruling was made that regular bonuses for city bus workers are also included in ordinary wages. This could impact the entire transportation industry.

Performance-Based Pay, a Hidden Variable in Ordinary Wages: The Challenge Left by the KHNP Ruling

However, not all bonuses cross the threshold of ordinary wages. As seen in the KHNP case, while basic bonuses were recognized as ordinary wages, the Supreme Court ruled that the scope of recognition for basic performance-based pay, which was paid differently based on business units and individuals, needed further review. In other words, the ‘minimum guaranteed amount’ has emerged as a key issue. In the case of performance-based pay where payment rates vary significantly based on performance, it is interpreted as a signal that the entire amount may not be recognized as ordinary wages.

• Complexity of differentiated performance-based pay: Performance-based pay, where payment rates vary based on individual performance or business unit results, struggles to meet the ‘fixedness’ requirement.
• Importance of the ‘minimum guaranteed amount’: It is highly likely that only the minimum amount guaranteed to all employees, regardless of performance, will be recognized as ordinary wages.
• Need for corporate system overhaul: Companies need to clarify the nature of their management performance-based pay systems and prepare for ordinary wage-related lawsuits.

From Astronomical Bonuses to Educators’ Performance Pay: The Diverse Faces of Bonus Systems

Bonuses vary greatly depending on their purpose and form. In May 2026, Kwak Noh-jung, CEO of SK Hynix, received a bonus of company shares worth 8.5 billion won for his contributions to the growth of High Bandwidth Memory (HBM). This is a prime example of an incentive that rewards outstanding individual performance and encourages long-term corporate growth. In contrast, different forms of bonuses exist in the public sector.

• High-value performance incentives: As in the case of SK Hynix CEO Kwak Noh-jung, executives who significantly contribute to achieving specific management goals or corporate growth may receive large bonuses, such as stock grants.
• Public sector performance bonuses: In 2026, performance bonuses for educators saw budget increases and changes in evaluation methods, such as an increased weight on quantitative assessments. This is an attempt to boost teacher morale and enhance the objectivity of evaluations.
• Holiday bonuses and regular bonuses: Holiday bonuses and regular bonuses, received by most employees, contribute to the basic financial stability of workers and are often at the center of ordinary wage controversies.

Ultimately, bonuses are more than just extra payments; they are an important element that affects employees’ rights and a company’s wage structure. Recent Supreme Court rulings clarify the legal nature of bonuses while once again highlighting the complex structure of performance-based pay. It is time for both companies and employees to accurately understand the meaning of bonuses and their legal implications.

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Honestly, talk of a semiconductor supercycle thanks to High Bandwidth Memory (HBM) has been ongoing since last year, but who knew it would be this big? Today, let’s delve into how SK Hynix is maintaining such explosive growth, whether the ‘1.3 billion KRW per person’ bonus employees are anticipating is just a pipe dream, and what kind of global strategy the company is pursuing.

Record Performance: The Start of a Supercycle Led by HBM

Looking at SK Hynix’s current performance forecasts is jaw-dropping. DS Investment & Securities predicted that operating profit in Q1 2026 would reach 39 trillion KRW, with annual figures potentially growing to 211 trillion KRW, and even 282 trillion KRW by 2027. KB Securities estimated SK Hynix’s operating profit at 251 trillion KRW in 2026 and 360 trillion KRW in 2027, raising its target stock price to an incredible 1.9 million KRW.

• Soaring Memory ASP: The average selling price (ASP) is rising much faster than expected.
• HBM Leadership: SK Hynix is leading the HBM market, an essential component for the AI era, with unparalleled technological prowess. Many predict that HBM3E will become the flagship product in 2026.
• General DRAM Shortage: Analysis suggests that the shortage extends beyond HBM to general DRAM, increasing the company’s pricing power.

Given this situation, it’s impossible for performance not to be good, right? In essence, the expansion of AI infrastructure is completely reshaping the memory market.

SK Hynix Bonus: Is ‘1.3 Billion KRW Per Person’ Really Possible?

There’s a good reason why SK Hynix employees are talking about a ‘1.3 billion KRW per person’ bonus. Global investment bank Macquarie Securities projected SK Hynix’s operating profit to be 447 trillion KRW in 2027, and based on this figure, an analysis suggested the company could afford to pay up to 1.29 billion KRW per person in bonuses. The agreement between labor and management last September to use 10% of operating profit as a source for excess profit sharing (PS) was a stroke of genius.

• Basis for Optimistic Forecast: Of course, this 1.3 billion KRW figure is based on the most optimistic forecast. Based on the consensus of domestic securities firms, around 700 million KRW per person in 2026 is considered more realistic.
• Comparison with Samsung Electronics: Samsung Electronics’ labor union is demanding 15% of the semiconductor division’s (DS) operating profit as bonuses, leading to comparisons with SK Hynix. Some analyses suggest that Samsung Electronics employees might receive more if the union’s calculations are met.
• Happy Dilemma: Regardless, for employees, the important thing is being in a position to have a ‘happy dilemma’ over ‘how many hundreds of millions’ they’ll receive. This bonus expectation is even stirring up the recruitment market.

At this point, it’s easy to say, ‘Who needs the lottery?’ It seems like a very desirable virtuous cycle where the company’s success brings smiles to its employees.

Targeting the Global Market: Will a US ADR Listing Give It Wings?

SK Hynix seems to be aiming to expand its presence beyond the domestic market onto the global stage. News has emerged that it plans to pursue a US stock market listing (ADR) in the second half of 2026. While one purpose is to raise up to 14 billion USD (approximately 19 trillion KRW) in funds, perhaps more importantly, it reflects the company’s determination to have its value properly recognized by global investors.

• Fundraising and Investment Expansion: Funds secured through the US listing are likely to be used for investments in new semiconductor production facilities both domestically and internationally. This could include investment in the semiconductor plant to be built in Indiana.
• Strengthening Global Standing: A US stock market listing will help narrow the valuation gap with global peer companies like Nvidia and further elevate the company’s global standing.
• Interest from Foreign Retail Investors: Recently, foreign retail investors have been selling Nvidia and buying major domestic semiconductor stocks like SK Hynix and Samsung Electronics. This is evidence of strong interest from global investors.

SK Hynix’s efforts to solidify its position in the global market are expected to continue. It’s truly preparing to spread its wings and soar.

We’ve covered SK Hynix’s unstoppable performance, employee bonuses, and global expansion plans. SK Hynix is demonstrating an overwhelming presence at the center of the semiconductor supercycle. We eagerly anticipate what amazing news it will surprise us with next.

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