SK hynix has turned into a massive financial juggernaut on the back of the relentless demand for HBM and the corresponding shortages on the legacy DRAM and NAND front.

Now, just a few days after the memory giant rolled out a titanic stock buyback program, it has reportedly agreed to an employee compensation package laden with bells and whistles, including a carve out for its employees' aunts and uncles.

For the benefit of those who might not be aware, SK hynix recently announced a 40-trillion-won share buyback program. Even so, Goldman Sachs calculates that SK hynix will generate 252 trillion won ($180 billion) in free cash flow from 2025 - 2027. Assuming the company will return 55 percent of this cash pile to its shareholders, it still leaves dry ammo of around 70 trillion won after accounting for the latest share buyback program and 30 trillion won in dividends. What's more, the shares that SK hynix will buy under this program will then be allotted to its employees under a still-tentative compensation package.

Meanwhile, details have started trickling out on a new employee compensation package that SK hynix is currently negotiating with its workers, and they are quite ostentatious:

1. Base pay increases by 6.3 percent on average.
2. Around 10 percent of the annual operating profit goes into the employee performance bonus pool.
3. Performance bonuses will be paid 40 percent in cash and 60 percent in SK hynix shares - though employees can opt for an all-stock award, and if the stock value immediately after delivery falls below the promised bonus amount, SK Hynix will compensate for the shortfall in cash.
4. Pension support will rise to $287 per month.
5. Shift-work allowance will increase from $151 to $187 and will be treated as an ordinary wage, which also lifts the base pay used for some other remuneration-related calculations.
6. Housing loan limits for married employees will double to $144,000.
7. Promotion rates and meal support are set to increase.
8. Bereavement support of $215 plus 2 days of leaves will be expanded to include aunts and uncles.
9. Death benefits will increase and care leave will increase to 10 days per year.
10. Renovations for employee welfare center, main cafeteria and gym.

Meanwhile, as we reported recently, SK hynix disclosed $54.6 billion (79.3 trillion won) in revenue and an operating profit of $41.6 billion for Q2 2026, equating to an year-over-year growth of 257 percent and 557 percent for revenue and operating profit, respectively.

Do note that SK hynix's CEO recently went so far as to proclaim that 2027 "will be the worst year in the industry's history from the supply perspective."

Bear in mind that SK hynix's Yongin Y1 fab will come online in February 2027, while the Y2 will do so in H2 2028. As such, the company is expected to supply 18 billion GB of HBM in 2026 and 24 billion GB in 2027.

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