Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Union protests Samsung SDI's plan to sell industrial film business
Samsung SDI's polarizer film factory in Cheongju, North Chungcheong Province / Courtesy of Samsung SDI
By Park Jae-hyuk
Workers fear fallout from Chinese firm’s management
Samsung SDI is facing a backlash from its unionized workers over the battery maker’s plan to sell its struggling industrial film business to a Chinese company.
Last month, the Korean firm decided to sell its polarizer film production and sales operations in Cheongju, North Chungcheong Province, and Suwon, Gyeonggi Province, to Wuxi Hengxin Optoelectronic Materials for 1.12 trillion won ($849 million).
Following the decision, workers at Samsung SDI’s Cheongju factory organized a union and joined the Korean Metal Workers’ Union (KMWU) under the Korean Confederation of Trade Unions, a militant umbrella union.
The workers have claimed that management made the decision unilaterally without giving prior notice. They also expressed concerns about the leak of core technology for optical film to China.
Additionally, the union pointed out that workers will be forced to leave Cheongju, if they choose to transfer to Samsung SDI’s other plants, and that those who opt to stay at the factory will worry about their job security under the Chinese firm’s management.
When LG Chem sold its polarizer businesses last year to two Chinese companies for 1.1 trillion won, the company redeployed its employees and carried out a voluntary redundancy program.
“Under the collective agreement signed between Samsung SDI and the KMWU, the company should inform the union in advance of its plan to sell its business and should start renegotiation when labor conditions change,” the KMWU said in a statement.
“We asked for a special negotiation with the company regarding the sale.”
The KMWU and unionized workers at Samsung SDI’s Cheongju factory plan to hold a press conference at Samsung’s building in Seoul, Wednesday, to declare their objection to the sale.
Samsung SDI was unavailable for comment on this issue.
Since Chinese firms started supplying low-priced industrial films used for LCDs and other IT products, a growing number of Korean chemical firms have sold their industrial film businesses to cope with worsening profitability.
Decelerating demand for IT products has also prompted Korean firms to cease the production of industrial films.
In 2022, SKC sold its polyester film division to Hahn & Company for 1.6 trillion won.
After the acquisition, the private equity firm changed the names of the companies spun off from SKC to SK Microworks and SK Microworks Solutions.
In August, Kolon Industries spun off its money-losing polyester film business to set up a joint venture between its spun-off company and SK Microworks.