Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
Samsung Electronics labor unions vow no retreat in wage talks
Members of Samsung Electronics Labor Union wave union flags during a massive rally at the company’s main semiconductor production base in Pyeongtaek, Gyeonggi Province, Thursday. Korea Times photo by Shim Hyun-chul
By Lee Gyu-lee
Samsung Electronics labor unions staged a mass rally on Thursday, stepping up pressure on management with the threat of a full‑scale strike next month amid the critical industry upturn for the memory chipmaker.
A joint labor alliance of three of the company’s major unions — Samsung Electronics Labor Union (SELU), National Samsung Electronics Union (NSEU) and Samsung Electronics Co. Union (SECU) — held a rally at the company’s main semiconductor production campus in Pyeongtaek, Gyeonggi Province. The alliance claimed the rally drew out approximately 40,000 members, while police estimated 30,000.
The coalition has been demanding the company to remove the cap on performance‑based bonuses with more transparent calculation criteria and allocate 15 percent of annual operating profit to such payouts. Among the unions, SELU recently became Samsung’s first majority union with about 74,000 members and won a legal recognition as the representative of its workers.
“The company has warned of crisis every year and, even now as it eyes the global leader (in the industry), it tells us not to let our guard down,” the union’s chair, Choi Seung-ho, said during the rally.
Members of Samsung Electronics' labor alliance hold a massive rally at the company’s main semiconductor production base in Pyeongtaek, Gyeonggi Province, Thursday. Korea Times photo by Shim Hyun-chul
“It was not management, but you, the union members, who made Samsung the world’s no. 1 in semiconductors, who kept production running, improved processes and stayed up all night to raise yields.”
Based on projections that Samsung’s annual operating profit could reach up to 300 trillion won ($202.62 billion) this year, the union’s 15 percent demand would yield more than 40 trillion won in bonuses, topping the company’s R&D spending of 37.7 trillion won in 2025.
The company has previously countered with a proposal to offer special bonuses exceeding the current cap if its Device Solutions division, which houses the semiconductor business, achieves an industry-leading performance, but talks have stalled as unions insist on a permanent structural change.
Members of Samsung Electronics' labor alliance wave banners calling for scrapping the company's ceiling on incentives during a rally at the company’s main semiconductor production base in Pyeongtaek, Gyeonggi Province, Thursday. Korea Times photo by Shim Hyun-chul
The unions warned they will launch a full-scale strike from May 21 to June 7 if no agreement is reached, which is estimated to result in daily losses of about 1 trillion won from the shutdown of semiconductor production lines.
“Management insists that performance is determined solely by external market conditions, dismissing employees’ sweat and effort, and treats staff as mere numbers rather than as dedicated contributors,” Choi said, noting the union will use the strike to bring a “change” to the company.
“If we halt production for 18 days in next month’s strike, it will create a gap worth nearly 18 trillion won. With the strike, we will make it crystal clear just how important the value of our labor union is.”
Members of Samsung Electronics' labor alliance walk during a massive rally at the company’s main semiconductor production base in Pyeongtaek, Gyeonggi Province, Thursday. Korea Times photo by Shim Hyun-chul
The strike is especially concerning as it could inflict serious damage on Samsung Electronics’ semiconductor supply at a time when competition for the artificial intelligence chip market is intensifying. If a walkout prevents the company from meeting delivery commitments under contracts with major global customers such as Nvidia, the dispute could escalate into legal battles over compensation claims as well as a major disruption in the global memory chip supply chain.
On the same day, a small group of Samsung shareholders also staged a counter-protest nearby, criticizing the unions’ demands and warning of broader economic fallout.
“Negotiations over performance bonuses may be a matter between labor and management, but closing a plant is a completely different issue … Stopping and then restarting a semiconductor fab requires astronomical amounts of money and time,” the group said.
“A plant is a tangible asset in which shareholders hold an equity stake, and shutting it down during a boom cycle is an act that inflicts damage directly to the property of the company and shareholders.”