But Bonuses at Samsung
For the first time since 2013 Samsung employees were given a special bonus for the holidays. Roughly 100,000 employees at 20 Samsung Group (pvt) companies were given a special bonus on top of their Christmas Eve year-end bonus, including Samsung Electronics (005930.KS), Samsung C&T (028260.KS) and Samsung Life (032830.KS) which could be as much as double their monthly wages. Samsung employees also are able to earn TAI (Target Achievement Incentives), usually given in July and December if the division has met half year and full year goals, and OPI’s (Overall Performance Incentives) at the end of January if the company exceeds its profit target. OPI’s are typically derived from a pool of 20% of the excess profits and can be as high as 50% of the employee’s annual wages. Samsung’s Device Solutions business employees (semiconductors and Display), which generated operating margins not seen since 2018 (9 mos.), are expected to see a 100% TAI and likely at 100% OPI in January.
In past years, automobile dealers would gather near the Samsung facilities and offer 2% discounts for Samsung employees who would had just received bonuses, as long as they could show an official copy of their certificate of employment, but this year it seems that employees receiving bonuses are less likely to buy a new vehicle and more likely to pay down mortgages for homes they purchased over the last as hosing prices in South Korea spiked ~12% during the first three quarters of this year, pushing many residents to buy before they were priced out of the market. While local businesses always see some traditional Hoesik (“eating together”) from Samsung employees, they have muted expectations this year despite the large bonuses.
In past years, automobile dealers would gather near the Samsung facilities and offer 2% discounts for Samsung employees who would had just received bonuses, as long as they could show an official copy of their certificate of employment, but this year it seems that employees receiving bonuses are less likely to buy a new vehicle and more likely to pay down mortgages for homes they purchased over the last as hosing prices in South Korea spiked ~12% during the first three quarters of this year, pushing many residents to buy before they were priced out of the market. While local businesses always see some traditional Hoesik (“eating together”) from Samsung employees, they have muted expectations this year despite the large bonuses.
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