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Samsung Electronics top management calls for dialogue as workers threaten strike

Samsung Electronics' top executives have vowed to continue negotiations with the union over bonus increases, while President Lee Jae Myung has weighed in on the labor dispute, emphasizing that collective action must remain within limits. The union is demanding 15% of operating profits as bonuses, with an 18-day strike threatened starting May 21.

By Tertius News AI Desk 1 outlet · 7 articles Version 1 Coverage Apr 23 – May 20, 2026 Published Aug 14

Lead

Samsung Electronics' top management has pledged to continue negotiations with the company's union to bridge differences over bonus increases, even as unionized workers threaten an 18-day strike starting May 21. The dispute centers on performance-based bonuses tied to the company's record earnings from its AI-related semiconductor business.

President Lee Jae Myung has weighed in on the conflict, saying that companies' management rights should be respected as much as labor rights, and that collective action by labor unions should remain within "certain limits."

Coverage Comparison

Reports from Yonhap News provide a detailed account of the escalating labor dispute, with coverage spanning from the initial rally to the breakdown of last-minute negotiations.

On April 23, about 40,000 Samsung Electronics workers rallied at the company's semiconductor plant in Pyeongtaek, south of Seoul, demanding a sharp increase in performance-based bonuses. At the time, President Lee Jae Myung's policy chief, Kim Yong-beom, expressed hope that the issue would be resolved through dialogue, noting that it had not reached a stage of extreme confrontation.

By May 7, Samsung Electronics Vice Chairman Jun Young-hyun and President Roh Tae-moon, both co-CEOs, made an appeal on the company's internal bulletin board after management and the union failed to reach a compromise. They wrote: "Under the current challenging global business environment, all members of management will take a responsible approach to ensure that the company's future competitiveness is not weakened."

On May 15, Jun was reported to have urged executives during a management briefing to remain vigilant and not become complacent amid the chip market boom, calling it "the last golden opportunity" to restore the company's fundamental competitiveness.

On May 18, President Lee posted on his X account that "labor should be respected as much as companies, and corporate management rights should also be respected as much as labor rights."

By May 20, last-minute wage negotiations between Samsung Electronics and the union had broken down, only a day before the planned strike. President Lee, speaking at a Cabinet meeting, said that while it is good for labor unions to pursue their interests through the right to collective action, "there must be certain limits to it." The presidential office earlier expressed "deep regret" after the government-mediated negotiations collapsed, urging both sides to continue efforts to avert the strike.

Key Claims

The union is demanding 15% of the company's operating profits as performance-based bonuses, a claim carried by multiple reports.
Due to the company's record-breaking earnings on the AI-driven semiconductor boom, the demanded bonus pay could amount to as much as 45 trillion won (US$29.9 billion) annually, more than four times the amount the company paid in dividends to all shareholders last year, according to one report.
Some estimates suggest the company could suffer up to 30 trillion won (US$20.3 billion) in losses if the strike takes place, as reported by one source.
The union has threatened an 18-day general strike from May 21 to June 7.
The company posted an operating profit of 57.23 trillion won for the first quarter, up from 6.68 trillion won a year earlier, driven by strong demand for high-end memory chips used in artificial intelligence applications.
Labor Minister Kim Young-hoon urged both management and the union to continue negotiations and reach a compromise to avert the worst-case scenario, pledging government support for the talks.
Jun Young-hyun warned that the industry upcycle should be viewed as "the last golden opportunity" to restore the company's competitiveness, and cautioned against complacency.
President Lee stressed the three fundamental labor rights -- freedom of association, collective bargaining, and collective action -- are intended to protect workers as socially vulnerable members, rather than to serve as a means for a few people to pursue their own interests. He also said the government contributes to companies' operating profits and that it would be impossible for investors to take a share of operating profits that could be considered the collective share of the public before tax is deducted.

Perspectives

Samsung Electronics: Vice Chairman Jun Young-hyun and President Roh Tae-moon have pledged to take a responsible approach to ensure the company's future competitiveness is not weakened, and have asked employees to do their best in their respective roles. Jun has also called on executives to remain vigilant and not become complacent during the chip market boom.

Presidential office and President Lee Jae Myung: President Lee has emphasized that management rights should be respected as much as labor rights, and that collective action must remain within limits to avoid causing "serious harm" to others. The presidential office expressed regret over the breakdown of mediation and urged both sides to continue efforts to reach an agreement.

Samsung Electronics labor union: The union is demanding higher performance-based bonuses and the removal of caps on incentive payments, with a threatened 18-day strike starting May 21 if demands are not met. The union has been demanding bonuses tied to earnings from the AI-related semiconductor business.