Samsung strike involving 47,000 workers looms as South Korea’s president urges labor deal
Samsung Electronics labor union members chanted “Change it to be transparent!” They are carrying banners that say: While holding a mass rally in front of the company’s foundry and semiconductor factory in Pyeongtaek on April 23, 2026, demanding the removal of the cap on performance bonuses. (Photo: Jung Yeon-je / AFP via Getty Images)
Jung Yeon-je | Afp | Getty Images
South Korean President Lee Jae Myung staged an 18-day strike at Samsung Electronics machines on Monday, calling for respect for the rights of both workers and management.
Posting in Korean on X, Lee said, “Labor should be respected as much as the business world, and corporate management rights should be respected as much as workers’ rights.”
“Extremism is not helpful; extremes lead to reversals,” he added, according to a CNBC translation of the statement.
Lee’s remarks were the latest in a series of statements by government officials urging Samsung Electronics and the labor union to reach an agreement before the strike, which is scheduled to begin on May 21.
The final round of talks between the union and Samsung management is scheduled for Monday.
The union’s demands focus on Samsung’s performance-based bonus system. It is seeking performance bonuses equivalent to 15% of Samsung’s operating profits, the removal of bonus pay limits and a formalized bonus structure, among other measures.
Samsung management offered to allocate 10 percent of operating profits to bonuses and provide a one-time special compensation package. South Korean news agency Yonha.
Shares of Samsung Electronics rose as much as 6.65% on Monday.
Economic fallout
South Korean Prime Minister Kim Min-seok on Sunday reportedly He said the government would explore all possible response measures, including “emergency arrangements”, if there was a risk that the strike would cause “significant damage”.
Under South Korean law, the labor minister can request an “emergency regulation” to suspend the strike. 30 days If a dispute is likely to harm the economy or daily life.
Kim called Monday’s talks the last opportunity to avert the strike, adding that “the economic losses we will face will be beyond imagination.”
The prime minister estimated that direct losses from the strike could reach 1 trillion won ($664.7 million). If chip production disruptions force Samsung to scrap semiconductor wafers currently in production, the economic loss could reach up to 100 trillion won.
He emphasized that Samsung Electronics accounts for 22.8% of South Korea’s exports and 26% of its total market value. Seoul presidential office is also owned by Samsung Electronics share of revenue 12.5% GDP of South Korea.
Analysts have raised concerns about concentration risks in the South Korean stock market, as over-reliance on a small group of companies increases the risk of volatility and vulnerability to geopolitical shocks, including a slowdown in data center spending.
Kim’s statements followed an X post Last week, Finance Minister Koo Yun Cheol warned that “strikes should never occur under any circumstances.”
“Samsung Electronics is an important company that the world watches,” Koo said. he wrote. “Given the current management situation and its impact on the national economy, both the labor and management sides need to continue to strive to achieve principled negotiations.”
Samsung chairman Lee Jae-yong issued a rare public apology on Saturday for causing “anxiety and concern” to customers around the world. South Korean media reports.
More than 47,000 workers may participate in the strike. the union said.
It was also stated that the rally attended by 40,000 workers on April 23 caused a 58% decrease in foundry production and an 18% decrease in Samsung’s memory production. The union estimated that an 18-day strike could cost Samsung about 30 trillion won, or $20 billion.
— CNBC’s Miko Jang contributed to this report.
