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Meanwhile, Samsung Electronics has decided to restructured parts of its China business, withdrawing from its home appliance and TV sales operations.
Workers at Samsung Electronics’ Xi’an semiconductor plant and SK hynix’s Wuxi semiconductor plant in China are reportedly calling for higher performance bonuses, according to multiple local media outlets including Seoul Economic Daily, The Asia Business Daily, and The Korea Herald.
The demands come amidst broader labour developments in South Korea. Earlier, Samsung Electronics’ employees in South Korea staged a large-scale rally, warning of a potential 18-day strike if demands for higher wages, increased performance bonuses, and the removal of the existing bonus cap were not met. Meanwhile, rival SK hynix has reportedly agreed to union demands for compensation reforms and higher bonuses last September.
An industry source was cited saying that information flow across markets is fuelling frustration among employees in China: “Local hires at overseas subsidiaries know exactly how much headquarters employees are getting paid. As news about Samsung Electronics and SK hynix earnings and bonuses keeps appearing on Chinese portals like Baidu, demands for bigger bonuses are growing louder.”
As reported, SK hynix acknowledged awareness of the situation, stating that its performance bonus systems are operated “tailored to the characteristics of each country”. Samsung Electronics, meanwhile, said it has not received any “official request for higher performance bonuses from locally hired employees at the Xi'an plant”.
Separately, Samsung Electronics is reportedly restructuring parts of its business in Mainland China, withdrawing from its home appliance and TV sales operations to pursue a “selection and concentration” strategy. According to Seoul Economic Daily and The Asia Business Daily, the move was made “considering the rapidly changing internal and external business environment”.
In a statement cited by Reuters, Samsung Electronics said it would “make every effort to minimise any impact on customers resulting from this decision", and is "reviewing various support measures for business partners”. While exiting parts of its consumer electronics business, the company is expected to maintain its presence in China through mobile, semiconductor, and medical equipment businesses, with a continued focus on research, manufacturing cooperation, and investment in advanced industrial sectors.
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