Samsung Electronics Executive Chairman Lee Jae-yong speaks to reporters at Seoul Gimpo Business Aviation Center in western Seoul on May 16. [YONHAP]
Samsung Electronics Executive Chairman Lee Jae-yong publicly apologized on Saturday over an escalating labor dispute that has heightened the risk of a major strike that could disrupt production and global supply chains for semiconductors.
“Let me bear the full weight of this crisis and take responsibility for everything,” Lee said upon returning from a business trip to Japan at the Seoul Gimpo Business Aviation Center in western Seoul. “I sincerely apologize to customers around the world for the anxiety and concern caused by internal issues at the company. I also offer my sincere apology to the public who have always supported, loved and at times criticized Samsung.
“I would like to tell our labor union members and all Samsung family members that we are one body and one family,” Lee added. “Now is the time to wisely join forces and move in one direction. Lastly, I would like to thank the government and all officials who are working to resolve the issue.”
Lee’s remarks came as Samsung Electronics management and labor remain locked in a dispute over wages and the structure of performance-based bonuses.
The Samsung Electronics labor union has threatened a full strike starting from Thursday through June 7.
The government has also stepped in to mediate the dispute. The Ministry of Employment and Labor said Minister Kim Young-hoon met Samsung Electronics executives for about an hour on Saturday and relayed the government’s position and details from his earlier meeting with union representatives.
Kim urged management side to engage more actively in talks to resolve the conflict.
The union is demanding that Samsung allocate 15 percent of operating profit to bonuses and abolish the cap on its excess profit incentive system. The company, however, says it must consider changes in business conditions and investment needs.
Members of the Samsung Electronics labor union hold up cards during a rally demanding higher bonuses at its computer chip complex in Pyeongtaek, Gyeonggi, on April 23. [AP/YONHAP]
Tensions have also spread within the labor movement itself. Members of the Device eXperience (DX) division have increasingly criticized what they see as a union led by the Device Solutions (DS) semiconductor unit, saying the DS unit ignores the views of employees in finished-product businesses such as TVs and smartphones.
Samsung management has also raised its emergency response level in preparation for a possible strike.
The DS division has reportedly begun “warm-down” measures to reduce potential disruption to semiconductor production lines, adjusting wafer input and shifting output toward higher value-added products.
Senior Samsung executives issued a statement titled “We Apologize to the Public” on Friday, saying they would approach talks with an open mind and without preconditions.
Members of the Samsung Electronics labor union hold up cards during a rally demanding higher bonuses at its computer chip complex in Pyeongtaek, Gyeonggi, on April 23. [AP/YONHAP]
DS division head Jun Young-hyun and other executives also visited the union office at the Pyeongtaek campus in Gyeonggi and held talks with union representatives.
Industry observers warn that a full strike could affect not only production but also confidence in global supply chains. They say any disruption in high bandwidth memory production could prompt major AI server customers to reconsider their supply arrangements.
Some industry estimates suggest that a prolonged strike could result in combined direct and indirect losses of up to 100 trillion won ($66.8 billion), including production disruptions, customer losses, supply chain risks and damage to partner companies.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
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