Bank of Korea Says Semiconductor Bonuses Add Minor Inflation Risk While Energy Prices Remain Main Driver

The Bank of Korea stated in a June 17 report that performance-based bonuses in the semiconductor industry have risen sharply and may add to inflationary pressures. The central bank attributed most recent inflation to energy prices amid Middle East conflicts but singled out wage dynamics in tech manufacturing.

The report pointed to productivity gains, tight labor markets, and expanded performance pay as drivers of upward wage pressure in certain sectors.

It said these income increases affect prices via higher firm costs and greater household consumption. In late May, Samsung Electronics reached a profit-sharing deal with unionized workers averaging around $410,000 per employee in its semiconductor operations, where the company will allocate 10.5 percent of operating profits to such payments.

Reuters calculated that SK Hynix chip workers could receive bonuses exceeding 700 million won if annual profits hit 250 trillion won.

South Korean labor minister Kim Young-hoon said earlier this year that suppliers and local communities should also share in tech sector gains. Nvidia chief executive Jensen Huang told attendees at the Computex trade show in Taipei earlier this month that employees should be paid as much as possible.

Nvidia’s stock has risen 63 percent over the past year, lifting chief financial officer Colette Kress and executive vice president Jay Puri to billionaire status in July 2025, according to the Bloomberg Billionaires Index.

The Bank of Korea noted that the effects on prices depend on economic conditions and firms’ pricing power.