SK hynix Profit Surge Fuels Bonus Pressure as Big Chip Investments Loom SK hynix has posted a record first-quarter operating profit of more than 37 trillion won, prompting talk that it could climb into the world’s No. 4 spot on an annual basis. But as earnings surge, management faces rising pressure from the labor union over performance bonuses, adding to the company’s burden. According to securities-industry consensus estimates released on April 23, SK hynix is projected to post 358.037 trillion won in revenue this year, with operating profit as high as 277.7 trillion won. If those forecasts are realized, SK hynix would rank around fourth globally, ahead of Microsoft (245 trillion won) and Alphabet (240 trillion won). Even with record results, executives are increasingly concerned as bonuses of “hundreds of millions of won per employee” come into view, potentially squeezing management flexibility. Under a labor-management agreement to allocate 10% of operating profit to profit-sharing bonuses, the company would already need to set aside about 3.76 trillion won based on first-quarter operating profit of 37.6103 trillion won. Divided among about 35,000 employees, that works out to an average bonus of about 100 million won per person based on first-quarter results alone. If annual operating profit exceeds 270 trillion won, the average payout would be about 650 million won per employee. That level would surpass the cost of building a single advanced production base. SK hynix on the previous day officially broke ground on its advanced packaging plant, P&T7, in Cheongju, North Chungcheong Province, with a total budget of 19 trillion won. The projected annual bonus pool would exceed the cost of constructing a next-generation flagship production site. The gap is also large compared with spending meant to secure the company’s future. SK hynix’s R&D investment last year totaled 6.7325 trillion won. The projected bonus pool would also exceed by more than 10 times the company’s total dividends of 2.1 trillion won for more than 1.19 million shareholders. SK hynix has major projects awaiting funding, including its new M15X fab in Cheongju and the Yongin semiconductor cluster, both requiring investments in the trillions of won. The company also needs sustained funding to develop and mass-produce next-generation high-bandwidth memory, or HBM, to meet demands from global customers including Nvidia. Industry experts say the semiconductor sector’s volatility means the company should focus on capital allocation for long-term survival rather than becoming complacent amid record earnings, prioritizing preparation for future downturns and investment in next-generation processes. Ahn Ki-hyeon, executive director of the Korea Semiconductor Industry Association, said, “Since semiconductors are a national security asset, the union also needs cooperation at a broader level for the company’s sustainable growth, rather than focusing on short-term gains in performance bonuses.”* This article has been translated by AI. 2026-04-23 18:05:12

SK hynix posts record Q1 operating profit as Hyundai Motor margin slides SK hynix posted its best quarterly results on record on surging demand for artificial intelligence chips, while Hyundai Motor saw profitability weaken despite higher sales, raising fresh concerns about Korea’s growing reliance on semiconductors. On the 23rd, SK hynix said first-quarter revenue rose to 52.5763 trillion won and operating profit to 37.6103 trillion won. That was up 198.1% and 405.5% from a year earlier, respectively, and marked a record for any quarter. Its operating margin reached 72%, the company said. The results were unusual for a seasonally slow period, helped by expanding AI infrastructure investment and a shift toward higher-value products. The boom could continue as AI demand broadens from training to real-time inference, strengthening the base for memory demand. Some in the securities industry have forecast SK hynix’s annual operating profit could exceed 200 trillion won, which would place it fourth globally. Hyundai Motor and Kia, however, showed weaker profitability even as sales grew. Hyundai Motor’s first-quarter revenue rose 3.4% from a year earlier to 45.9389 trillion won, but operating profit fell 30.8% to 2.5147 trillion won. Kia, which is set to report on the 24th, is expected to post operating profit of 2.2986 trillion won, down about 24%, according to the consensus estimate cited in the report. The two automakers posted record sales in the U.S. market, but tariff costs weighed heavily on earnings, the report said. Hyundai Motor said it spent 860 billion won on tariff costs in the first quarter. Kia’s tariff costs are estimated at 500 billion to 700 billion won. Other headwinds included higher oil prices tied to the Middle East war, rising raw material prices and a weaker currency. The report said a fire at a parts supplier in Daejeon caused production disruptions of about 30,000 vehicles, while Middle East risks added pressure to both logistics costs and the sales environment. With autos, a key export industry, also hit by worsening external conditions, the profit structure of Korean industry is becoming more concentrated in semiconductors, the report said. In an AI-driven industrial reshuffle, semiconductors have moved into an outsized-profit phase, while autos remain highly exposed to policy and cost variables, it added. Kim Pil-su, a professor in the Department of Future Automotive Engineering at Daelim University, said reliance on Samsung Electronics and SK hynix for AI semiconductors such as high-bandwidth memory, or HBM, means the semiconductor tilt is likely to persist for now. He added that uncertainty over auto tariffs continues and geopolitical risks in the Middle East are growing. 2026-04-23 18:04:17

Samsung Elec's Pyeongtaek campus - protest instead of celebration of chip boom PYEONGTAEK, April 23 (AJP) -The usual soundtrack of the Samsung Electronics Pyeongtaek Campus—the low, constant hum of fabrication lines—was drowned out Thursday by a different cadence: tens of thousands of workers chanting in lockstep, their placards snapping in the wind as a bonus fight spilled into the open. At 2 p.m., the newly ascendant Samsung Electronics Enterprise Union—now the company’s first majority union—filled the forecourt with an estimated 40,000 members, a sea of dark jackets punctuated by white placards: “Change it transparently” and “Abolish the cap.” The slogans rose and fell in waves, each chant snapping into unison under the emcee’s cadence. From atop a crane, union chairman Choi Seung-ho delivered a speech overlooking the tightly packed crowd, underscoring the union’s sharpened leverage after securing legal worker representative status on April 15 with around 74,000 members. The union warned it would launch a general strike from May 21 to June 7 if negotiations fail. Earlier in the day, a small counter-protest by the Korea Shareholder Movement Headquarters drew just four participants, who argued that shareholders oppose what they called excessive bonus demands and potential risks to the semiconductor operation. 2026-04-23 18:03:37

SK hynix posts 72% operating margin in Q1 on HBM boom and surging memory prices SK hynix’s first-quarter earnings beat pushed its operating margin into the 70% range, outpacing Taiwan Semiconductor Manufacturing Co. as well as Nvidia and Apple, the company said. The strong growth cycle is likely to continue for now. SK hynix reported an operating profit margin of 72% for the first quarter, it disclosed on April 23. That topped its previous record of 58% in the fourth quarter of last year. The figure implies more than 7,000 won in operating profit for every 10,000 won in sales, an unusually high level for a manufacturer. Among semiconductor companies, it ranked first by a wide margin. Samsung Electronics posted a 43% operating margin in the first quarter; its memory business alone is estimated to be in the 60% range. The gap with TSMC, the world’s top foundry, also widened. Based on last year’s fourth quarter, SK hynix led TSMC (54%) by 4 percentage points, but the difference has since grown to 14 points. Nvidia’s operating margin is 65%, and Apple’s is about 48%, the report said. Profitability rose as sales of high-value high-bandwidth memory, or HBM, expanded and prices for other memory chips such as commodity DRAM and NAND flash surged. HBM accounts for 30% of SK hynix’s total DRAM shipments, with the rest in commodity products. By revenue, DRAM made up 78% and NAND flash 21%. With semiconductor demand jumping, first-quarter DRAM selling prices rose more than 60% from the previous quarter, while NAND flash average selling prices increased in the mid-70% range. The earnings strength also improved the balance sheet. Cash and cash equivalents at the end of the first quarter rose 19.4 trillion won from the end of the previous quarter to 54.3 trillion won. Borrowings fell 2.9 trillion won to 19.3 trillion won, lifting net cash to 35 trillion won. The company aims to build net cash of more than 100 trillion won, with most of it to be used to raise utilization at its M15X facility, build infrastructure for the Yongin cluster, and secure key equipment such as extreme ultraviolet, or EUV, tools. The first-quarter beat, despite a seasonally weak period, has also raised expectations for the second half. If mass production of sixth-generation HBM4 ramps up in the second half, the company’s annual results and profitability metrics could climb further, the report said. Some brokerages forecast annual revenue of 300 trillion won and operating profit exceeding 230 trillion won. Kim Woo-hyun, SK hynix chief financial officer, said on the company’s first-quarter earnings conference call that memory demand from major customers has expanded to HBM, server DRAM and enterprise SSDs, but manufacturers cannot quickly increase supply. “As this supply shortage continues, there is a high possibility that the memory price upcycle will be prolonged,” he said. The company said the current rise in memory prices reflects structural changes such as a broad AI shift, suggesting the supply-demand imbalance could persist and prices could keep rising. 2026-04-23 18:03:21

Korean Brokerages Ramp Up Marketing for Domestic Derivatives as Retail Trading Grows A bull market is drawing more retail investors into derivatives, intensifying marketing competition among brokerages. Firms are cutting fees and offering gift-card promotions. Experts warn that if the rally fades, losses from leveraged derivatives trading could fall squarely on individuals. According to the securities industry on the 23rd, brokerages are stepping up campaigns tied to domestic derivatives. Brokerage A said it will offer up to three months of discounted fees for domestic futures and options customers and provide gift cards to clients who meet trading requirements. Brokerage B is targeting new and inactive customers with gas gift cards, cash and fee coupons to spur first trades. Brokerage C is offering cash for completing education and additional rewards based on trading volume. The industry is broadly competing on incentives to expand domestic derivatives trading. The shift is also seen as a response to tighter oversight that has made aggressive marketing harder for overseas stocks and overseas derivatives, pushing firms to focus on domestic derivatives, which face relatively fewer restrictions. Brokerage results from last year underscore the trend. As of the end of last year, brokerages’ fee income from domestic derivatives (excluding overseas) totaled 508.9 billion won, up 13.8% from 447.1 billion won a year earlier. Over the same period, interest income from credit provision rose 8.5% to 3.1073 trillion won from 2.8626 trillion won. The structure rewards higher trading volumes with more fees, and expanding debt-funded investing boosts interest income. Still, responsibility for investment decisions and losses rests with individuals, prompting calls for caution. Futures and options are typical leveraged products that allow large positions with small margin deposits, meaning losses can multiply if investors bet the wrong way. Margin trading carries similar risks. Data from the office of Rep. Heo Young, a member of the National Assembly’s Political Affairs Committee, show individual investors posted cumulative losses of about 3.667 trillion won in domestic derivatives from 2020 to 2024. Losses were recorded each year over the five-year period, though the first half of 2025 saw a profit of 326.3 billion won. Heo said investors who meet eligibility requirements may mistakenly believe they are fully prepared for high-risk trading and take on excessive speculation, adding that brokerages’ sales practices that stoke get-rich-quick sentiment through promotions should be examined. Financial authorities, meanwhile, have not issued specific warnings on exchange-traded domestic derivatives. They highlighted risks in leveraged ETFs and overseas derivatives trading late last year and early this year, but have provided no separate guidance for domestic exchange-traded derivatives. A Financial Supervisory Service official said there are no plans yet to respond regarding domestic derivatives, adding that exchange-traded derivatives are handled by investors who have completed education, making them different from products such as ETFs traded by the general public.* This article has been translated by AI. 2026-04-23 18:00:55

Seoul pushes for wartime command transfer as U.S. urges caution on timeline SEOUL, April 23 (AJP) - A long-simmering question at the heart of the U.S.–South Korea alliance is once again coming into sharper focus: when — and under what conditions — should Seoul take full wartime command of its own and U.S. military forces on the peninsula? Behind the scenes, officials in Seoul and Washington are quietly diverging over the timeline for transferring wartime operational control, or OPCON, with South Korea favoring an earlier date and U.S. military leaders urging a slower, conditions-based approach. Timeline divides the allies South Korean officials have been working toward completing the transition before 2028, aligning with President Lee Jae Myung’s term in office. But recent comments by Gen. Xavier Brunson, commander of U.S. Forces Korea, suggest Washington may be working on a different timeline. “Political expediency must not outpace the conditions,” Gen. Brunson said in congressional testimony on Tuesday (local time), cautioning against setting deadlines that could compromise readiness. According to defense officials familiar with the discussions, the U.S. military has been working internally toward a target closer to early 2029 — a timeline not fully coordinated with Seoul. A South Korean government official, speaking on condition of anonymity, acknowledged the gap. “We are not fundamentally apart on the goal,” the official said. “But there is clearly a difference in how fast we believe we can get there.” Political pressure vs. military conditions Operational control of South Korean troops was handed over to the U.S.-led U.N. Command during the 1950–53 Korean War and later transferred to the Combined Forces Command in 1978. Peacetime operational control reverted to Seoul in 1994. The OPCON transition would place combined Korea–U.S. forces under the command of a four-star South Korean general in wartime, with a four-star U.S. general serving in a supporting role. At the center of the timing debate is a tension between political preference and military preparedness. Rep. Yoo Yong-won, a senior opposition People Power Party lawmaker on the National Assembly’s Defense Committee, criticized what he described as the prioritization of political considerations. “The government is pushing this too hard because it wants to achieve it within its term,” he said. “That is not desirable. The conditions must come first.” Experts with military and intelligence backgrounds also stressed that the OPCON transfer is fundamentally a structural security issue. Chae Sung-jun, a former National Intelligence Service (NIS) official and now head of the Department of Military Studies at Seokyeong University, said the transition must be approached with caution. “This is not simply about reclaiming authority,” he said. “It is about maintaining deterrence under a new command structure — and that is far more complex.” He added that the issue should be understood in its historical and strategic context. “The debate is not about whether to regain control, but how to integrate wartime command into an alliance structure without weakening deterrence,” he said. Lingering dependence Despite improvements in South Korea’s military capabilities, reliance on U.S. assets remains significant. Yoon Sang-yong, a military studies professor at Seokyeong University, pointed to persistent gaps in intelligence and operational integration. “We are still heavily dependent on U.S. intelligence, surveillance and reconnaissance assets,” he said. “These are not capabilities that can be replaced quickly.” He also raised concerns about alliance dynamics after the transfer. “If the command structure changes, there is a legitimate question as to whether the United States will respond with the same level of immediacy and scale in a crisis,” he said. Alliance in transition For Washington, the issue is shaped by long-standing institutional norms. The U.S. military has historically been reluctant to place its personnel under full foreign command — a practice sometimes referred to as the “Pershing Principle.” However, it has granted operational control to foreign commanders in joint-force arrangements during combat. At the same time, American strategy is shifting toward encouraging allies to assume greater responsibility for regional security. This creates a delicate balance: supporting South Korea’s autonomy while ensuring that the alliance’s deterrence posture remains intact. The risk of miscalculation Security experts warn that how the transition is handled could influence North Korea’s strategic calculations. “Command structures send signals,” Chae said. “If the transition is not backed by sufficient capability, it could invite miscalculation.” Others argue that further delays could undermine South Korea’s credibility as a self-reliant military power. A narrow window The coming months will be critical, with working-level consultations expected to intensify ahead of the annual Security Consultative Meeting in Washington later this year. A senior South Korean defense official, speaking anonymously, emphasized the stakes. “This is ultimately both a military and political decision,” the official said. “But if the balance is wrong, the consequences will be strategic.” 2026-04-23 18:00:39

Shinhan Card Says 2,600 Merchant Records Confirmed as Credit Data Leak in 2025 Breach Shinhan Card said Wednesday that a financial regulator’s investigation found about 2,600 cases within a merchant data breach disclosed in December 2025 also involved leaked credit information. In a notice posted on its website, the company said the findings relate to a personal data leak that occurred on Dec. 23, 2025, and that the regulator confirmed additional exposure of credit information. Shinhan Card said it cannot individually notify 52 of the roughly 2,600 affected cases because the data subjects cannot be identified, and it is issuing the public notice for that reason. The company said it took steps to block further leakage as soon as it became aware of the incident in December and completed a review of related internal processes. It emphasized that no separate leak has occurred since that time. Shinhan Card previously reported that the December incident involved 192,088 leaked records tied to merchants. It said the latest review confirmed that about 2,600 of those cases qualify as leaks of personal credit information. The company again apologized for the leak of personal credit information and said it will work to ensure customers can use Shinhan Card services with confidence. 2026-04-23 18:00:16

Text-hispters indulge in reading trend in Seoul SEOUL, April 23 (AJP) - In an era dominated by short videos and rapidly consumed content, young people in South Korea are turning back to books and written text. Reading books, copying favorite passages by hand, and visiting bookstores and libraries have become part of a growing lifestyle trend known as “text-hip,” where reading is seen not as an act of studying or self-improvement, but as a way to express personal taste and emotion. April 23 marks World Book and Copyright Day, established by UNESCO in 1995 to promote reading, publishing, and the protection of intellectual property rights. The day is observed around the world through book-related events and campaigns. The trend is visible across central Seoul, where the city government is operating outdoor reading spaces including Gwanghwamun Book Yard, Reading Seoul Plaza, and Reading Clear Stream. The program transforms plazas, streamsides, and other open urban areas into public libraries with bookshelves, beanbags, and lounge areas where visitors can read freely. This year, the city has also introduced walking tours for foreign tourists and a “Travel Library” featuring participation from 14 countries. Scenes at the outdoor libraries differ from traditional quiet reading rooms. Visitors read with drinks beside them, share books with friends, or photograph memorable lines to post online. At sunset in Gwanghwamun Square, reading spaces host concerts and film screenings, turning reading into a leisure activity. The reading boom has also expanded into tourism. At HiKR Ground, a cultural space located in the eastern hipster district of Seongsu, a recent exhibition titled “Text-Hip x Local Travel” introduced 109 regional typefaces from across the country. The exhibition invited visitors to read, write, and experience fonts inspired by local identity, including seaside-themed lettering from Sokcho and typefaces reflecting the landscape of Andong. Programs included handwriting sessions, postcard making, and Korean-language tattoo experiences. The shift reflects changing travel preferences. While tourism once focused on famous landmarks and food, younger travelers increasingly seek local stories, design, and atmosphere. Experts say the trend is also linked to digital fatigue. In a world of endless scrolling, turning paper pages and writing by hand offers a slower form of concentration and rest. Books were once seen as something to enjoy quietly alone. But in Seoul today, they are bringing people together, reshaping urban spaces, and inspiring new journeys. On World Book Day, young readers and tourists alike are experiencing the city through words once again. 2026-04-23 17:58:09

Court Jails Driver Accused in Union Protest Death, Member Accused of Ramming Police Barricade A court has ordered the detention of a truck driver accused of running over and killing a union member at a Cargo Truckers Union rally and a union member accused of injuring a police officer by driving into a barricade. Legal officials said the Changwon District Court’s Jinju branch on the 23rd issued arrest warrants for a truck driver in his 40s, identified only as A, on suspicion of murder and other charges, and for a union member in his 60s, identified only as B, on suspicion of obstructing official duties with a dangerous weapon and other charges. The judge cited concerns they could flee or destroy evidence. Arriving at court for their warrant hearings, A responded to reporters’ questions — including whether the act was intentional and whether he had anything to say to the victim — by saying only, “I’m sorry,” before entering the building. B also repeatedly said, “I’m sorry,” to reporters. The incidents occurred on the 20th outside the CU Jinju logistics center in Jeongchon-myeon, Jinju, South Gyeongsang Province, where the Cargo Truckers Union held a rally urging BGF Logis, CU’s headquarters, to normalize operations. Authorities said A drove his truck toward union members. As members in front of the vehicle banged on it and demanded that he stop, A continued driving, running over them. Two members were seriously injured and one died. On the same day, officials said B drove a van into a police barricade set up at the logistics center’s main gate, and an officer stationed in front of it was struck and injured. A union member in his 50s, identified only as C, was detained the previous day after allegedly threatening police with a weapon. With the latest warrants, three people have now been detained in connection with the rally. Despite the casualties, union members have continued demonstrating near the CU logistics center in Jinju, marching in the area and chanting while demanding an apology from the company and a thorough investigation. Police have deployed riot units and are monitoring the scene to prevent further injuries, officials said.* This article has been translated by AI. 2026-04-23 17:54:18

South Korea to Check Crypto, Financial Assets in Debt Relief Reviews to Curb Abuse The South Korean government has secured a legal basis to let debt workout agencies review a debtor’s virtual assets, along with other financial holdings, during screening for debt relief programs. Officials said the goal is to curb moral hazard and focus support on people who genuinely need help. The Financial Services Commission said Thursday that a revision to the Credit Information Use and Protection Act passed the National Assembly’s plenary session the same day. The key change allows debt restructuring bodies to verify a debtor’s holdings of deposits, savings products and securities, as well as virtual assets, when assessing repayment capacity. Reviews previously relied mainly on real estate and tax information, which critics said left room for hiding assets. Under the revision, the agencies may obtain necessary financial and property information without a debtor’s prior consent, within a limited scope. Debtors must be notified individually that their information was provided and will be able to check the inquiry. The measure applies to government debt restructuring programs such as the Sae Do-yak Fund and the Sae Chulbal Fund. These entities buy the claims of long-term delinquent borrowers and provide support such as debt write-offs or reductions in principal and interest. The FSC said the change will make repayment-capacity reviews more precise, basing decisions on actual ability to repay rather than debt size alone, and easing fairness concerns for borrowers who repay in good faith. It also said the revision will allow full-scale debt adjustment procedures for cases among the Sae Do-yak Fund’s holdings that require repayment-capacity screening, which is expected to speed support for long-term delinquent borrowers seeking to get back on their feet. The revision is set to take effect three months after promulgation. The FSC said it will also update related subordinate regulations, including enforcement decrees.* This article has been translated by AI. 2026-04-23 17:51:20