SK Hynix shares declined 1.5% to 1.646 million won on Tuesday after union members narrowly rejected a tentative wage agreement, while the broader South Korean equity market edged higher.
The rejected deal, negotiated over two months, proposed a 6.3% wage increase and a restructured performance-bonus system. The bonus structure, which became a key point of contention, would have allocated 40% of the incentive in cash and 60% in company shares. Of the stock portion, 40% could be sold immediately, while 20% would vest in 10% installments over two years.
Union members voted 50.08% against the agreement, with 7,535 workers opposed and 7,510 in favor, a margin of just 25 votes. Turnout reached 93.8%, with 15,045 ballots cast out of 16,083 eligible union members. The narrow rejection does not immediately signal production disruptions, according to the company.
The dispute reflects broader concerns among workers regarding compensation tied to SK Hynix’s volatile stock amid surging profits driven by demand for high-bandwidth memory used in artificial-intelligence applications. Shares of SK Hynix underperformed the KOSPI, which rose 0.2% on the day.
