SEOUL — Samsung Electronics’ board chairman warned Tuesday that a planned general strike by unionized workers could hurt the company’s competitiveness, customer relationships and the broader South Korean economy.
Chairman Shin Je-yoon said in a message posted on Samsung’s intranet that he felt responsible for the situation and apologized for causing concern.
“As chairman of the board, I feel a deep sense of responsibility for the current situation and apologize for causing concern,” Shin said.
Unionized workers have announced plans for an 18-day walkout from May 21 to June 7 as they seek higher performance-based bonuses. Some estimates suggest the strike could cost Samsung Electronics up to 30 trillion won, or about $20.3 billion, if it proceeds for the full period.
Shin said a prolonged dispute could leave both management and labor worse off, while also affecting shareholders, investors and the national economy. He warned that a strike could weaken business competitiveness, damage customer trust and disrupt supply chains.
“In the semiconductor business, timing and customer trust are critical,” Shin said. “Delays in development or production, or missed delivery deadlines, could undermine our core competitiveness and market leadership as customers turn to rivals.”
He urged both sides to resolve the dispute through sincere dialogue and build a more constructive labor-management relationship.
The labor dispute comes as Samsung Electronics is benefiting from strong demand for high-end memory chips used in artificial intelligence applications. Last month, the company reported first-quarter operating profit of 57.23 trillion won, up sharply from 6.68 trillion won a year earlier.
South Korean political and industry leaders have also expressed concern about the planned strike at the country’s largest company.
President Lee Jae Myung said last week that excessive labor demands could ultimately hurt both unions and workers more broadly, though he did not refer to Samsung by name.
“If certain labour organizations face public outcry for excessive or unfair, self-serving demands, it would harm not only the unions themselves but other workers as well,” Lee said during a meeting with senior aides at Cheong Wa Dae.
Industry Minister Kim Jung-kwan said Samsung’s strong performance reflects not only the efforts of the company and its employees but also broader national support and contributions.
The union has reportedly asked Samsung to allocate 15% of operating profit to bonuses. (Source: IANS)
