Top policymakers call for prompt settlement of Samsung labor dispute
From left, Financial Supervisory Service Governor Lee Chan-jin, Finance Minister Koo Yun-cheol, Bank of Korea Governor Shin Hyun-song and Financial Services Commission Chairman Lee Eog-weon pose ahead of a market conditions review meeting, Thursday. Yonhap
Korea's top economic and financial policymakers on Thursday called for the prompt settlement of a labor dispute at Samsung Electronics Co., warning that a possible strike could threaten the country's economy amid a semiconductor supercycle.
Finance Minister Koo Yun-cheol and other heads of financial authorities made the joint remarks during a meeting on the potential fallout from a planned walkout by Samsung Electronics workers, according to the Ministry of Finance and Economy.
The meeting was attended by Bank of Korea Gov. Shin Hyun-song; Lee Eog-weon, chairman of the Financial Services Commission; and Lee Chan-jin, governor of the Financial Supervisory Service.
"The participants expressed concern that a strike by Samsung Electronics workers could pose a significant risk to economic growth, exports and the financial market," the finance ministry said in a release.
"They highlighted that there should never be a strike and that the issue should be promptly settled through principle-based negotiations," it added.
Samsung Electronics and its workers failed to reach an agreement Wednesday after two days of government-led mediation talks that had been viewed as a last-ditch effort to avert a strike scheduled for May 21.
The union has demanded performance bonuses equivalent to 15 percent of operating profit, along with the removal of the payout cap and the formal institutionalization of the bonus system amid the company's record-breaking earnings during the global artificial intelligence boom.
Management, meanwhile, proposed allocating 10 percent of operating profit to bonuses and offering a one-time special compensation package that it said exceeds industry standards.
Touching on the financial market, the participants said the recent volatility in Korea's foreign exchange market has been excessive relative to the country's economic fundamentals, due mainly to foreign investors' selling of local shares and speculative trading.
Budget Minister Park Hong-keun, left, shakes hands with Bank of Korea (BOK) Gov. Shin Hyun-song at the central bank in Seoul, Thursday. Yonhap
In a separate event, Budget Minister Park Hong-keun met with the BOK governor in Seoul as part of efforts to bolster cooperation between the government and the central bank in drawing up the country's mid- and long-term growth strategy.
"While managing fiscal and monetary policies in a harmonious manner, both agencies need to make proactive efforts to secure future growth engines and overcome structural challenges," Park said during the meeting.
"We are facing a major transformation in the industrial structure and AI, along with significant demographic changes," Park added.
Park said closer policy coordination would help the country address pending issues, including economic polarization and climate change.
Shin echoed the view, noting that the central bank will continue to exchange opinions on various economic agendas to address such issues.
"The central bank will continue efforts to stabilize prices and the financial market while providing the government with policy recommendations to enhance the country's growth potential," Shin added.
During the meeting, Park and Shin acknowledged that Korea's exports have posted strong growth despite external uncertainties and that the government needs to focus its policy efforts on addressing inflation and other weaknesses, according to the budget ministry.