Samsung Electronics affiliates continue mass layoffs targeting employees who recently received performance bonuses, including the Mokpo Incentive and business performance wages.
Layoff Submission Surge
Thirteen layoff candidates from Samsung Electronics’ service division submitted resignation incentive applications at the Seoul Dongbu Labor Office on February 12. Another 38 candidates from the company filed at the Seoul Jungang Labor Office.
Overall, 164 layoff candidates from Samsung Electronics have accepted voluntary resignation packages so far. Affiliates including Samsung SDS, Samsung C&T, Samsung E&A, and Samsung Biologics have also processed similar submissions centrally.
Background on Incentives and Layoffs
These employees qualified for performance wages such as the Mokpo Incentive and business incentives in June 2019. Companies now demand resignations after full payout, structuring incentives around average three-month wages earned during the period.
Average wage performance pay triggers generous layoff incentives, expanding the scope further.
Company Position on Calculations
Earlier in January, officials confirmed the Mokpo Incentive layoff base had settled, requiring application of that amount to performance pay.
Business incentive managers stated, “Even under proper company calculations, it falls within business performance allocation,” with no additional funds allocated.
The firm reviews internal business performance wages separately while handling performance-related pay disputes.
Similar approaches appear at SK Hynix and Hanwha Ocean, where layoff candidates received comparable packages.
