South Korean memory chipmaker SK Hynix slid 3.6% to ₩1,611,000 on Tuesday as investors weighed the impact of a rejected wage agreement with its labor union.
The decline followed a tentative deal reached last week that proposed a 6.3% wage increase and a restructured profit-sharing bonus scheme, allocating 40% of bonuses in cash and 60% in stock. However, just over half of the 15,045 union members voted against the proposal, according to a major union report cited by Reuters.
The rejection comes as SK Hynix and rival Samsung Electronics face heightened scrutiny over profit distribution amid surging demand for AI-related memory chips. The companies have benefited from a multi-year boom in artificial intelligence infrastructure, driving record earnings and fueling investor expectations for further payouts.
The broader South Korean market mirrored the sentiment, with the KOSPI index falling roughly 3% on Tuesday. The decline extended a volatile stretch for chipmakers, with Samsung’s stock already pressured after underwhelming market measures were announced earlier in the week.
Investor focus is also turning toward Nvidia’s upcoming earnings report, due later in the week. The U.S. chip giant’s results are widely anticipated to set the tone for AI-linked equities, including SK Hynix and its peers, amid concerns over sustainability of current valuation levels.
