AI is reshaping the world, but it is undeniable that South Korea is among the first to be profoundly transformed, experiencing a surge of wealth.
Some statistics are almost unbelievable. Powered by AI chips, South Korea's two giants—Samsung Electronics and SK Hynix—saw their first-quarter profits skyrocket by 756% and 405%, respectively.
What does this signify? Barring unforeseen circumstances, the combined profits of these two companies are projected to exceed 1 trillion yuan each by 2026.
This figure likely surpasses the total profits of listed companies in most countries worldwide.
South Korea is reaping immense rewards, and its people are exhilarated.
The South Korean stock market has been the world's top performer this year. Despite geopolitical tensions, the overall market has surged over 85%. Shares of these two star companies have more than doubled and continue to climb.
In such a booming sector, hesitation is a luxury.
Employees at SK Hynix are particularly jubilant.
Reports indicate that under Hynix's compensation rules, there is no cap on bonuses, with 10% of the company's annual operating profit allocated for this purpose.
In 2025, Hynix's profit reached 47.2 trillion won. Based on this, the average performance bonus per employee was approximately 140 million won (about 650,000 yuan), setting a company record.
Benefiting from a global super-cycle in memory chips, with profits this year expected to surpass 1 trillion yuan, Hynix employees' bonuses are set to far exceed last year's.
International investment bank Macquarie Securities estimates that, based on Hynix's salary structure, its over 30,000 employees could each receive a super bonus of around 6.1 million yuan this year.
6.1 million yuan! Note, this is not for a select few but for all employees.
Observers note this could be the first time in history a company with tens of thousands of staff awards such substantial bonuses to everyone—engineers, security guards, cleaners, workers, drivers, and more.
A joke circulating on South Korean social media captures the mood: A man on a blind date faces initial disdain, but when he removes his jacket to reveal a H力s vest, the room is stunned, and he instantly becomes the center of attention.
While an anecdote, it underscores that technology is the primary productive force, and catching the right trend is the ultimate wealth creator. AI's generation of immense wealth is no empty promise.
However, immense wealth often brings immense trouble.
Currently, the most troubled South Korean company might be Samsung Electronics. While its employees have received huge rewards due to超额 profits, they are also planning strikes to protest, citing the gap with Hynix's compensation.
As mentioned, Hynix has a system allocating 10% of profits to bonuses, potentially granting each employee 6.1 million yuan this year. Samsung lacks a comparable scheme, creating a significant disparity.
Reports indicate that on May 11, Samsung's labor and management held negotiations. Both sides were firm. The union demanded allocating 15% of profits for bonuses and implementing differentiated bonuses for non-memory部门 employees. Management refused, proposing instead a 10% profit bonus pool and promising that if the company achieves top industry ranking, employee bonuses would exceed those of competitors.
The union remains adamant, insisting that if satisfactory concessions are not met, it will not hesitate to launch an 18-day general strike.
It is anticipated that a strike would further drive up global chip prices, causing Samsung losses of approximately 43 trillion won (about 196.5 billion yuan).
However, if Samsung accedes to the demands, estimates suggest that employees in Samsung's memory business could receive pre-tax bonuses averaging 2.61 billion won (about 11.86 million yuan) per person over the 2026-2028 period.
This amount would be 17 times the total three-year salary of an average regular South Korean employee.
It truly is a wealth-creation machine. Comparison fuels desire.
The key issue now is that if Samsung is ultimately forced to concede, a wave of other South Korean companies will face similar pressure.
Following Samsung's labor union, Hyundai Motor's union has demanded 30% of net profit as bonuses; unions at Kia and LG are also calling for 20% of profits as performance bonuses.
Of course, figures like 20% or 30% are part of negotiation tactics. But South Korean companies are indeed under immense pressure.
Reports state, "Even Kakao, facing its biggest crisis since founding, has been asked to allocate 15% of operating profit as performance bonuses, with the matter now in labor commission mediation."
It feels akin to a "money grab"!
When distribution becomes a competition, no one feels they have enough.
Some South Korean media have criticized the behavior of certain major corporate unions as "grabbism"—unwilling to share hardship during difficult times but demanding a fixed share of profits during good times.
"Especially threatening strikes in core national industrial production lines is unimaginable among major global tech companies."
From the employees' perspective, they contributed to this wealth and deserve a larger share.
Moreover, it's not just South Korean employees eyeing these profits.
A recent sharp drop in the South Korean stock market was partly attributed to a social media post by Kim Yong-beom, the President's chief policy advisor, questioning, "With Samsung and Hynix's first-quarter profits soaring... why shouldn't the超额 profits from AI be shared with all citizens?"
Market fears that the government might impose a special tax on Samsung and Hynix caused the stock market to plunge over 5%. Kim later clarified there would be no windfall tax, allowing the market to gradually recover.
Finally, some observations:
First, positioning is crucial. South Korean companies' massive earnings demonstrate that even in a booming sector, being in the right place is key.
This is not to disparage South Korea. We must acknowledge and learn from its technological innovation, industrial planning, and especially its advantages in the semiconductor sector.
Once considered the laggard among the Asian Tigers, four decades later, South Korea's per capita GDP has surpassed Japan's, its economic output exceeds that of many established European nations, and its major corporations have become profit powerhouses.
Times change. South Korea's爆发力 should not be underestimated.
Second, inequality breeds discontent. Samsung employees' rewards are enviable to many, yet compared to Hynix, they feel shortchanged, hence the strikes and demands for higher bonuses.
The strength of South Korean unions is well-known globally. While prosperity is good, companies not benefiting from the AI红利, in particular, face significant challenges.
Media warnings highlight that the current situation fosters a deep sense of deprivation among employees of other中小 enterprises, exacerbating the dual wage structure in South Korea's labor market.
These are South Korea's internal affairs. However, it reflects human nature.
We should never overestimate human nature, as it is often tested by disparity.
Third, we must strive forward. We should learn from South Korea and the world—adopting best practices and discarding the undesirable.
I believe that with the intelligence and diligence of the Chinese people, we will cultivate our own Samsungs and Hynixes, seizing new opportunities to generate wealth globally.
Growing the pie is paramount; dividing it, while important, comes second. Furthermore, given the Chinese mindset, it's unlikely we would encounter such severe distribution conflicts.
One must have dreams, for they might just come true.
Personal views only.
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