Shares of South Korea’s SK Hynix fell 1.5% on Tuesday after union members narrowly rejected a proposed wage agreement, underscoring labor-management tensions at the memory-chip maker.
The company’s stock declined to 1.646 million won, while the broader KOSPI index edged up 0.2%. The union’s vote, with a 93.8% turnout among 16,083 eligible members, split nearly evenly: 50.08% opposed the deal and 49.92% supported it, a margin of just 25 votes.
The proposed agreement included a 6.3% wage increase and a performance-bonus structure tied to company performance. The bonus would have been split between cash (40%) and shares (60%), with the stock portion subject to staggered vesting: 40% immediately available for sale, and the remaining 20% deferred in 10% installments over two years.
Negotiations had spanned roughly two months before reaching the proposed terms. The incentive structure became a key point of contention, as SK Hynix’s profits have surged amid strong demand for high-bandwidth memory chips used in artificial-intelligence applications. Workers raised concerns over receiving a larger share of compensation in volatile company stock.
The narrow rejection does not immediately disrupt production. Labor and management are expected to resume talks, with a renewed focus on the performance-linked incentive framework and other unresolved terms.
