Great profit wearing Covid-19, Samsung employees are awarded up to 100% of the monthly salary

Samsung has grown well despite corona virus sweeping the world in the second quarter of the year. This is due to an increase in demand for memory chip lines as countries around the world enter a period of social separation and many remote work practices must be applied.

The world’s largest memory chip maker said in its earnings report Tuesday that its operating profit would increase 22.7% to 8.1 trillion won ($ 6.8 billion) in second quarter from April to June compared with a year ago, although sales dropped 7.4% to 52 trillion won. The improvement in operating profit comes from the increase in chip prices during this period. Full quarter business results will be announced next month.

“The recovery of Samsung Electronics from Covid-19 has begun to clear since mid-May,” said CW Chung – senior analyst at Nomura. “We believe that the demand for cloud-based services, which has increased sharply following the blockade order, will slow down in the near future – while demand for smartphones, televisions, and home appliances. and automation has dropped significantly because the blockade order is now recovering rapidly. ”

Chung, however, issued a warning in anticipation of the company’s third-quarter earnings report due to increased concerns about the second wave of Covid-19 infection. The number of daily infections is reaching record high in the US and many other countries when the blockade was lifted.

Eoh Kyu-jin, an analyst at DB Financial Investment, is expected to report improved Samsung results over the long term. “We expect the trend towards contactless information technology to continue to grow. Samsung – with its leading semiconductor product model will see long-term and stable improvements in their financial statements.” .

Prosecutors are investigating Samsung Electronics Deputy Chairman Lee Jae-yong over allegations related to the incident in 2015. Prosecutors will decide whether to prosecute the Samsung heir as soon as they conclude. ended my 19-month investigation. Last month, prosecutors wanted an arrest warrant for Mr. Lee, but the court rejected the request and said it was not necessary to arrest him.

Vice Chairman Lee, 52, has visited many of the company’s operations in the past few months including the Xian factory in China in an attempt to show he is extremely interested in business operations when the company has to face the pandemic. In South Korea, large business leaders are often tolerated for crimes they incur because of their contributions to the national economy.

Regardless of the succession of the heirs, Samsung employees receive great bonuses for the company’s good business. Specifically, personnel in the device solution segment including memory chips will receive a bonus of 100% of the average monthly salary. In contrast, the company will pay employees in the mobile segment and consume one-third of the average monthly base salary for failing to meet the half-year target due to blockade orders.