Samsung Electronics proposed on Thursday that South Korean unions restart wage negotiations after government-brokered labor talks collapsed, a union official said, citing a company letter. The Korean Labor Council also called on the two sides to hold government-mediated negotiations again on Saturday in an effort to avoid a long-awaited large-scale strike.
Trade union representative Choi Seung-ho responded to Samsung’s letter and said: If the system cannot be standardized and the process transparent, there will be no point in continuing the negotiations. The core demand is for Samsung to comprehensively reform its bonus system.
Choi Seung-ho later published a reply letter sent to management on Thursday: If Samsung can come up with a detailed plan to implement the union’s demands for a transparent and institutionalized profit distribution mechanism, the union is willing to return to the negotiating table.
The union said it would launch a strike as planned if it did not receive a reply from Samsung by 10am (1am GMT) on Friday.
The union is dissatisfied with the huge gap between its bonus package and chip company SK Hynix, and has warned that it will hold an 18-day strike starting on May 21 if its demands are not met.
Samsung Electronics issued a statement stating that although the government mediation process has ended, the company will continue to communicate and dialogue to ensure the smooth implementation of salary negotiations in 2026.
South Korean Finance Minister Choo Kyung-cheol stated on Thursday that strikes must be avoided at all costs, emphasizing that strikes will bring significant risks to South Korea's economic growth, exports and markets.
South Korea's economy has become increasingly dependent on booming chip exports. Semiconductors accounted for 37% of South Korea's total exports in April, up sharply from 20% in the same period last year, official data showed.
JPMorgan Chase pointed out in a research report that given that more employees are expected to participate in the strike, the impact of this strike on production may be greater than previously expected.
The bank estimates that the strike may cause Samsung to lose 21 trillion to 31 trillion won in operating profit (equivalent to 14.08 billion to 20.79 billion US dollars), and lose about 4.5 trillion won in sales opportunities.
South Korea's "MoneyToday" quoted industry sources as reporting that Samsung had launched a chip production reduction plan on Thursday due to the potential strike.
An official Samsung spokesman declined to comment.