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Samsung managers return bonuses over poor financial results

Approximately 200 managers from Samsung's mobile division have returned a quarter of a recently received bonus as they accept responsibility for the company's poor recent performance.

The value of the returned bonuses is estimated at over three billion won (£1.7 million) and comes at a time when Samsung's profits are dipping with each financial quarter.

Read more: Samsung expecting drop in Q2 profits as poor financial results continue

While the firm's most recent results recorded a substantial profit of 8.5 trillion won (£4.8 billion) in the first quarter of 2014, this was a dip from the 8.8 trillion won (£5 billion) that it recorded a year earlier.

Moreover, a recent survey of 35 major global markets by researcher Counterpoint showed that the flagship Galaxy S5 smartphone was outsold by Apple's iPhone 5S in the month of May, suggesting that the device was not selling as well as expected.

While it is reportedly not uncommon for corporations in South Korea to return bonuses, particularly amongst public companies, the news is part of a continuing trend for the firm which has seen its market share squeezed by low-cost Chinese manufacturers.

Read more: Apple's iPhone may be driving record profits now but the future is far from certain

Samsung is set to disclose its full earnings for April to June on 31 July, where it is expected to post its worst quarterly profits in two years.