Seoul: Samsung Electronics Co.'s largest labor union announced it will go forward with a major strike planned for next week, even after the company proposed to resume talks without preconditions. An official proposal was sent to the union earlier, marking management's latest attempt to avert the 18-day strike set to begin next Thursday, which could disrupt production at the world's largest memory chipmaker.
According to Yonhap News Agency, the union remains firm that further dialogue will not occur unless its key demands on performance-based bonuses are met prior to another round of government-mediated talks proposed for Saturday. Choi Seung-ho, head of the largest labor union at Samsung Electronics, stated, "We are willing to hold discussions after June 7," referring to the day after the planned strike is set to conclude. He added that they intend to exercise rights guaranteed under the Constitution.
Two days of government-led mediation talks concluded without agreement on Wednesday, as both parties remained divided over performance-based bonuses tied to earnings from the company's AI-related semiconductor business amid the current memory supercycle. The latest official document from management proposed maintaining the current excess profit incentive system, while offering a bonus pool calculation based on 10 percent of operating profit or economic value added (EVA).
The company also suggested introducing a special compensation system to create a more flexible incentive structure. However, the union has demanded fixed performance bonuses amounting to 15 percent of the semiconductor division's operating profit, along with the removal of the payout cap.
Later on Friday, company executives urged the union to resume wage talks and apologized to the public and government for any concern caused. "We view the union as one family and a partner sharing a common destiny, and we will engage in talks with an open attitude and without preconditions," the statement read. Despite this, no new proposals were presented to meet the union's requests.
In a subsequent visit to the union's office in Pyeongtaek, CEO Jun Young-hyun and other executives reiterated their willingness to continue negotiations, urging the union to resume talks. The union responded that negotiations could only proceed if their key demands were addressed. Choi noted that employees had lost trust in management, emphasizing the need for discussions on improving transparency in the bonus system and institutionalizing the removal of the payout cap.
Choi previously mentioned that around 41,000 unionized workers expressed intent to join the planned general strike, with the number potentially rising to over 50,000. The government has expressed concern over a strike at Samsung Electronics, warning it could pose significant risks to economic growth. Observers suggest that if a full-scale strike occurs, losses to the South Korean economy could reach up to 100 trillion won (US$66.7 billion).
The tech giant posted a record 57 trillion won in operating profit for the first quarter, with expectations for the full year's operating profit to reach around 300 trillion won. South Korea's exports hit a record $219.9 billion in the first quarter of 2026, driven by strong global demand for AI data centers, with semiconductor exports significantly contributing by surging 139 percent from the previous year to $78.5 billion as investment in AI-related servers accelerated.