Samsung and SK hynix parental leave rates drop amid semiconductor boom

Parental leave rates at Samsung Electronics and SK hynix have declined simultaneously for the first time in the first half of this year. According to reports from the Financial Supervisory Service, Samsung Electronics saw its parental leave rate drop to 35.5% from 36.2% during the same period last year. SK hynix also experienced a decrease, with its rate falling from 4.0% to 3.2%.

Industry analysts suggest the decline is linked to the semiconductor industry's current boom and the resulting high performance bonuses. Both companies have agreements to distribute a percentage of operating profits as bonuses. With Samsung Electronics' semiconductor division seeing significant profit improvements, some estimates suggest annual bonuses could reach between 200 million and 600 million won.

Because taking parental leave can result in being excluded from bonus payments or having a reduced payout due to shorter continuous service periods, employees are opting to remain at work. Experts note that as long as the semiconductor super-cycle continues, these leave rates may remain low, potentially counteracting national efforts to address low birth rates.