Samsung Electronics announced on November 22 that it would share the profit of its semiconductor division with its business partners.
For the first three quarters of this year, the semiconductor division of Samsung Electronics posted 53.15 trillion won in cumulative sales and 24.3 trillion won in cumulative operating profit.
For the profit sharing, Samsung Electronics is raising a mutual cooperation fund of approximately 15 billion won (US$13.5 million). The fund is raised on a matching grant basis by the company and its executive and staff members.
In addition, Samsung Electronics is going to pay record-high incentives to its business partners. The total amount of the incentives is estimated at 50 billion won. In the first half of this year, Samsung Electronics paid 20.17 billion won in incentives to 138 firms working with itself.
Under the circumstances, the profit shared by the semiconductor division of Samsung Electronics and its business partners this year is estimated to reach 65 billion won in total. The fund includes the special bonuses paid to the semiconductor division’s executive and staff members, which are equivalent to 400% of their base pays.