On August 19 Asia-Pacific time, SK Hynix ([SKHY](https://www.tradingkey.com/markets/stocks/skhy))'s 2026 wage negotiations, which had previously reached a deadlock over a record bonus allocation scheme, saw a key turning point. According to South Korean media reports, the union and management have reached a tentative agreement, bringing a temporary end to the weeks-long tug-of-war.
**Key Points**
* **Tentative Agreement**: SK Hynix union and management reached a tentative deal on August 19, ending weeks of deadlock over 2026 wage and bonus allocation schemes.
* **Bonus Allocation System**: Under the established system, 10% of annual operating profit funds performance bonuses without a previous payout cap, potentially yielding an average performance bonus of 700 million to 800 million Korean won per employee based on projected operating profits of 250 trillion to 270 trillion Korean won.
* **Core Dispute**: Union backlash occurred after management proposed paying part of the record bonuses in locked-up stock and adjusting payouts during loss-making years, which workers felt undermined prior commitments.
* **Market Impact**: The resolution temporarily relieves operational disruption concerns, though the dispute highlights tension between volatile semiconductor cycles and worker demands for immediate cash payouts.