SEOUL ─ SK Hynix's South Korean labor union is finalizing the wording of a tentative wage deal with management and will brief members on the terms Wednesday afternoon, a source familiar with the talks said.
The two sides were making last-ditch efforts to iron out differences and conclude the deal, which is subject to approval from union members.
A key issue in the talks is SK Hynix's lucrative bonus scheme.
Last year, SK Hynix agreed to share 10 percent of its annual operating profit with workers in the form of cash, under an agreement which would be in place for 10 years.
This year, however, management proposed paying more than half of bonuses in shares, with sale restrictions for a set period ─ a plan that met with union opposition.
In 2026, workers are set to receive an average payout of 779 million won ($547,127) per worker, according to Reuters calculations.
Also on Wednesday, the company said it would buy back and cancel 40 trillion won ($28.61 billion) worth of treasury shares to boost shareholder returns.
The South Korean chipmaker also said it would spend at least 50 percent of free cash flow generated between 2025 and 2027 on shareholder returns.
The company said it plans to pursue additional shareholder returns through share repurchases, cancellations and dividends, with details on the amount and method to be announced alongside its third-quarter earnings release.
