Minority shareholder group lodges complaints over Samsung, SK hynix wage deals

A minority shareholder rights group has filed complaints against South Korea's labor minister and the chief executives of Samsung Electronics Co. and SK hynix Inc. over wage agreements that link performance bonuses to company operating profits, according to Yonhap News.

The Korea Shareholders Movement Headquarters filed a complaint with the Corruption Investigation Office for High-ranking Officials against Labor Minister Kim Young-hoon on charges of abuse of power, obstruction of the exercise of rights and coercion. The group argued that Kim helped bring Samsung's prolonged wage dispute to an end on May 20 through the government's labor dispute mediation process, and that he induced the conclusion of the tentative wage agreement even though performance bonuses are not subject to collective bargaining or labor disputes.

In a separate complaint filed with the National Office of Investigation, the group accused Samsung Electronics CEOs Jeon Young-hyun and Roh Tae-moon, and SK hynix CEO Kwak Noh-jung, of breach of trust. The shareholder group claimed that the executives created a mechanism to siphon off corporate assets by agreeing to performance bonus demands without thoroughly reviewing the labor-management agreement.

The group also contends that it is illegal to predetermine a percentage of pre-tax operating profit and allocate it to performance bonuses, and that the distribution of corporate funds, including performance bonuses, requires approval at a general shareholders' meeting.

Under the wage agreement reached in May, Samsung will provide a special semiconductor performance bonus equivalent to 10.5 percent of business performance earnings. SK hynix has a profit-sharing system that allocates 10 percent of the semiconductor division's operating profit to employee bonuses.

On Aug. 5, the Korea Shareholders Movement Headquarters said its complaint cases against Samsung and SK hynix have been transferred to Investigation Divisions 1 and 2 of the Gyeonggi Nambu Provincial Police Agency, respectively.

Coverage notes

This report is based on two Yonhap News articles. One article from July 22 details the initial filing of the complaints, and a second from Aug. 5 reports the assignment of the cases against the CEOs to a regional police agency. Both articles present the same core facts and the shareholder group's arguments. No other sources or perspectives were available in the provided material.