Samsung Faces Major Strike Threat As Wage Talks Collapse Again

Samsung Electronics on Thursday proposed that its South Korean labour union resume wage negotiations after government-mediated talks collapsed, as concerns mounted over a planned lengthy strike that could hit the country’s crucial semiconductor industry.

According to a union leader, Samsung sent a letter requesting the resumption of discussions after mediation efforts by South Korea’s Labour Commission failed to produce an agreement.

The Labour Commission also urged both sides to return to the negotiating table on Saturday in an attempt to avert the threatened industrial action.

The union, angered by what it described as a wide disparity in bonus payments compared with rival chipmaker SK Hynix, has threatened an 18-day strike beginning May 21 if its demands are not met.

Union representative Choi Seung-ho rejected Samsung’s latest overture, insisting that deeper structural reforms were needed.

“There is no reason to continue the dialogue without institutionalisation and transparency,” Choi said, referring to the union’s demand for an overhaul of Samsung’s bonus scheme.

Samsung, in a statement, said it remained committed to resolving the dispute despite the collapse of the mediation process.

“We will continue engaging in dialogue to ensure the 2026 wage negotiations are resolved smoothly,” the company said.

South Korea’s Finance Minister Koo Yun-cheol warned that a strike at Samsung should be avoided at all costs because of its potential impact on the broader economy.

Koo said industrial action at the technology giant would pose “a significant risk” to South Korea’s economic growth, exports and financial markets.

South Korea’s economy has become increasingly reliant on booming semiconductor exports. Government data showed semiconductors accounted for 37 per cent of the country’s exports in April, up sharply from 20 per cent a year earlier.

Analysts at JPMorgan warned in a report that the production impact of a strike could be greater than previously expected, reflecting the union’s anticipation of wider worker participation.

The bank estimated the potential impact on Samsung’s operating profit at between 21 trillion won and 31 trillion won ($14.08 billion to $20.79 billion), while lost sales opportunities could total about 4.5 trillion won.

Meanwhile, newspaper MoneyToday reported that Samsung had begun reducing chip production on Thursday ahead of the possible strike, citing industry sources.

A Samsung spokesperson declined to comment on the report.

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