SK hynix expands benefits: bonuses for employees' aunts and uncles, housing loans up to $144,000

SK hynix, riding a wave of relentless demand for HBM and shortages in legacy DRAM and NAND, has agreed on a tentative employee compensation package with its union. The deal includes a base pay increase, downside protection for equity awards, higher pension contributions and shift-work allowances, as well as expanded housing loan limits.

Among the more unusual perks, the package extends bereavement benefits to employees' aunts and uncles. It also introduces paid care leaves, and funding for renovations to welfare centers, the main cafeteria, and the gym. Base pay will rise by an average of 6.3%. Around 10% of annual operating profit will be allocated to performance bonuses.

The package comes shortly after SK hynix announced a 40 trillion won ($28.6 billion) share buyback program. According to Goldman Sachs, the company is expected to generate 252 trillion won ($180 billion) in free cash flow from 2025 to 2027. If SK hynix returns 55% of that cash to shareholders, it would still have roughly 70 trillion won ($50 billion) left after accounting for the buyback and 30 trillion won in dividends. The shares repurchased under this program will be allotted to employees as part of the new compensation plan.

The company's financial strength is driven by its dominant position in the high-bandwidth memory market, which is critical for AI accelerators from NVIDIA and other chip designers. SK hynix's HBM revenue has surged, and the company has been investing heavily in new production capacity to meet demand. The generous employee benefits are seen as a way to retain talent in a competitive semiconductor labor market, where skilled engineers are in high demand.