SK Hynix (SKHY) and representatives of one of its South Korean labor unions held a fifth round of talks over the chipmaker's employee bonus scheme, Reuters reported Tuesday.

The discussions centered on management's proposal to pay more than half of annual bonuses in company shares, subject to sale restrictions and to adjust bonus payments when the company posts losses, according to the report.

The union rejected the proposal and warned it could take further action if SK Hynix fails to present a revised offer, Reuters reported.

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