Samsung Electronics has reached out to its South Korean workers’ union requesting renewed salary discussions following the breakdown of government-facilitated negotiations, according to a union official who referenced correspondence from the tech giant.
South Korea’s Labour Commission has also urged both parties to participate in another government-mediated negotiation session scheduled for Saturday, hoping to prevent the threatened extended work stoppage.
Union representative Choi Seung-ho responded to Samsung’s letter by stating: “There is no reason to continue the dialogue without institutionalisation and transparency.” His comment addressed the union’s push for changes to Samsung’s bonus payment system.
Choi subsequently shared a response he said was delivered to company leadership on Thursday, committing to participate in discussions if Samsung provides a comprehensive proposal addressing the union’s call for a clear and formalized profit-sharing arrangement.
The union declared that without a company response by 10 a.m. (0100 GMT) Friday, they would proceed with their planned work stoppage.
Frustrated by what they describe as a substantial disparity in bonus compensation compared to competitor SK Hynix, the union has warned of an 18-day strike beginning May 21 unless their requirements are satisfied.
Samsung Electronics released a statement acknowledging the conclusion of government-mediated proceedings while noting: “We will continue engaging in dialogue to ensure the 2026 wage negotiations are resolved smoothly.”
Finance Minister Koo Yun-cheol emphasized Thursday that preventing a strike was essential, warning it would pose considerable dangers to South Korea’s economic expansion, export performance, and financial markets.
The nation’s economy has grown increasingly reliant on thriving semiconductor exports. Computer chips represented 37% of the country’s exports in April, rising from 20% during the same period last year, based on official statistics.
JPMorgan analysts noted in their assessment that strike-related production disruptions might exceed earlier projections, given the union’s anticipation of widespread worker involvement.
The investment bank calculated potential damage to Samsung’s operating profit between 21 trillion won and 31 trillion won ($14.08 billion to $20.79 billion), with missed sales opportunities potentially reaching approximately 4.5 trillion won.
Industry sources told newspaper MoneyToday that Samsung began scaling back chip manufacturing Thursday in preparation for a potential strike.
Samsung confirmed in a statement: “Samsung is examining all possible options to ensure that production is not disrupted in the event of a strike.”
