The companies specialize in memory chips and have skyrocketed in value during the AI boom.
Local media outlets report that both companies and their union counterparts have reached a wage agreement that includes setting aside about 10 percent of operating profit for bonuses. This could lead to a bonus in the millions for an individual employee, according to The Korea Herald.
The bonuses are so large that they could lead to wage increases in other industries and thus have a "larger than expected effect" on inflation, according to a central bank report. Inflation is forecast to hit 2.7 percent for the full year, above the 2 percent target.
Some effect already seems to be visible. In Suwon, where Samsung is based, luxury consumption has increased significantly. This has also been felt on the stock market - where shares in department store chains have surged.
