Barron's Quotes Gi-Wook Shin on How Korea’s Semiconductor Boom Is Creating Social Instability

Barron's Quotes Gi-Wook Shin on How Korea’s Semiconductor Boom Is Creating Social Instability

Record profits led to significant employee bonuses, sparking turmoil, including internal union disputes.
Portrait photo of Gi-Wook Shin and a logo of the magazine Barron's with text "In the Media."

South Korea's stock market has been the world's hottest over the past year, with the Kospi Index surging 165% on the back of the country’s two semiconductor powerhouses, Samsung Electronics and SK Hynix. This new territory "is creating a lot of issues within Korea," Stanford sociologist Gi-Wook Shin, director of APARC's Korea Program, tells Barron's.

The magazine's story – South Korea Has a Chip Conundrum – Huge Profits and a Serious Selloff – highlights how the two companies' mind-boggling earnings and bonuses have opened something of a Pandora’s box of social and economic friction. For example, disgruntled employees at less-privileged Samsung divisions are leaving their union and trying to form a new one, Shin says.

The story notes, however, that these controversies "might look like a mild kerfuffle if the chip makers’ shares keep falling back to earth." Despite a 150% year-to-date gain, Samsung shares dropped 16% last week amid foreign investor sales and leveraged local buying.

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Portrait photo of Gi-Wook Shin and logo of news agency AFP with text "In the Media."
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