Samsung to give incentive to subcontractors

Samsung Electronics Co. said Friday it will roll out a combined incentive of 18.1 billion won (US$14.9 million) to its subcontractors in the chip segment to build "shared growth" with smaller companies.

The South Korean tech giant said the reward will be given to some 10,000 workers at around 100 subcontract firms that complied with safety regulations. The amount marked a 27 percent rise from 14.2 billion won handed out six months earlier.

Last year, Samsung decided to hand out incentives to its subcontractors twice a year to "help revitalize the national economy." Samsung first rolled out the program in 2013, when it provided rewards once a year.

Samsung's subcontractors are obligated to share the amount with their employees, and the reward cannot be used for other purposes.

The company said Thursday its semiconductor business, which recently emerged as Samsung's main source of revenue, posted an operating profit of 2.8 trillion won in the fourth quarter of 2015, a tad higher than the 2.7 trillion won posted a year earlier.

(Yonhap)