Chipmakers cut executive pay on lukewarm sales


In the first half of this year, top executives of South Korean conglomerates experienced fluctuations in their earnings, particularly in the semiconductor industry, which saw significant reductions due to lackluster financial performance. Samsung Electronics and SK hynix, the country's leading chipmakers, witnessed a 20 to 30 percent decline in the compensation of their top executives amid a global downturn in chip sales. For instance, Samsung's former semiconductors chief, Kyung Kye-hyun, received 730 million won in the first half of the year, down from 954 million won the previous year. Similarly, SK hynix Vice Chairman Park Jung-ho's earnings dropped from 5.05 billion won to 3.17 billion won. While the chipmakers are on track for improved profits this year, executive pay has been significantly impacted by the companies' substantial operating losses in the previous year. Conversely, executives in the automotive and battery sectors, which saw strong financial gains last year, received substantial incentives. Former LG Energy Solution CEO Kwon Young-soo, for example, saw a 33.4 percent increase in his compensation from the previous year, reflecting the success of the nation's top electric vehicle battery maker. Notably, Samsung Electronics Chairman Lee Jae-yong has not received a salary since 2017 as part of a corporate restructuring effort to enhance management transparency. Similarly, SK Group Chairman Chey Tae-won received a total of 3 billion won from SK hynix and SK Inc., the group's holding unit.


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