Shareholders file complaints over Samsung and SK hynix wage deal bonus terms

A shareholder advocacy group representing individual investors on Wednesday filed criminal complaints against the chief executives of Samsung Electronics and SK hynix, claiming profit-linked bonus agreements reached with labor unions were unlawful. The group, whose name translates roughly as the "Republic of Korea Shareholder Activism Headquarters," filed police complaints accusing SK hynix CEO Kwak Noh-jung, Samsung Electronics Vice Chairman Jun Young-hyun and CEO Roh Tae-moon of breaching their fiduciary duties to shareholders. It also filed a complaint against Labor Minister Kim Young-hoon with the Corruption Investigation Office for High-ranking Officials, alleging he abused his authority by intervening in Samsung's wage negotiations in May. Speaking at a press conference, Min Kyung-kwon, head of the group, argued that performance bonuses tied to corporate earnings should be treated as profit distributions, and thus should not be subject to collective bargaining. "Any profit-sharing arrangement should require shareholder approval, rather than being negotiated through collective barga

A minority shareholder rights group on Wednesday filed complaints against Labor Minister Kim Young-hoon and the chief executive officers of Samsung Electronics and SK hynix over the companies' recently signed wage deals that will use part of their operating profits to pay performance bonuses to their employees. The group, which calls itself the Korea Shareholders Movement Headquarters, argues performance bonuses should not have been subject to collective bargaining in the first place. The group filed a complaint with the Corruption Investigation Office for High-ranking Officials against the labor minister on charges of abuse of power, obstruction of the exercise of rights and coercion. Kim helped bring Samsung's prolonged wage dispute to an end May 20 through the government's labor dispute mediation process. The shareholder group argued that the minister had induced the conclusion of Samsung's tentative wage agreement, although performance bonuses are not subject to collective bargaining or labor disputes. The group filed a separate complaint with the National Office of Investigation agai