Deposits at SK hynix's workplace credit union surged by more than 500 billion won ($360 million) in six months, a jump analysts link to the record profit-sharing bonuses the chipmaker paid early this year.
Deposits at the SK hynix workplace unit of Korean Federation of Community Credit Cooperatives, known as MG Community Credit Cooperatives, stood at 2.059 trillion won at the end of June, up 500.5 billion won, or 32.1%, from 1.5586 trillion won at the end of last year, according to financial industry sources on the 13th.
Time deposits drew most of the money, rising 523.1 billion won over the six months to 1.5971 trillion won. The SK hynix credit union currently offers up to 3.95% annually on 12-month time deposits. Demand deposits rose 33.6 billion won to 292.4 billion won over the same period. By comparison, deposits at the Samsung Electronics credit union edged up 0.2% to 6.1853 trillion won.
The record bonuses drove the increase. Early this year, SK hynix set its profit sharing at 2,964% of base pay and paid out 80% of that in February. An employee earning 100 million won a year was calculated to receive 148 million won in total bonuses. SK hynix employees averaged 185 million won in pay last year, and averaged 144 million won in just the first half of this year.
Lending also expanded. Total outstanding loans reached 1.1186 trillion won at the end of the first half, up 178.6 billion won from 940 billion won at the end of last year. Home purchase loans rose 149.6 billion won to 735.5 billion won over the same period. The credit union has suspended new mortgage lending since April, however, because of pressure to manage the overall volume of household loans.
"The company is doing well, so the workplace credit union's assets are growing sharply too," a financial industry official said. "Deposit rates have kept rising since the second half began, so the credit union's deposit balance could grow further."
