Samsung Electronics management and labor return to talks today as even the American Chamber of Commerce in Korea warns over union strike
Union officials hold flags at the Samsung Pyeongtaek Campus, where a union rally was held in March.
Samsung Electronics’ labor and management are set to sit across from each other again at the negotiating table under government mediation ahead of the general strike scheduled for May 21. The talks are widely viewed as the final negotiation phase that will determine whether the general strike becomes a reality.
According to industry sources on May 11, Samsung Electronics’ labor and management will undergo post-mediation proceedings through the National Labor Relations Commission over two days, from May 11 to May 12. Post-mediation is a system in which, even after existing mediation has broken down, both parties may agree to re-enter a mediation process. The National Labor Relations Commission takes on the role of mediator to support negotiations, and any agreement reached through this process carries the same legal effect as a collective bargaining agreement.
The two sides had previously failed to reach a compromise during mediation proceedings conducted in February and March, resulting in a decision to suspend mediation, but they agreed to enter additional negotiations following persuasion by the Ministry of Employment and Labor.
On the union side, Choi Seung-ho, chairman of the Samsung Electronics branch of the super-enterprise union, along with vice chairman Lee Song-i and policy planning director Kim Jae-won, are expected to attend.
However, few observers view the chances of a negotiated settlement as high. The union is demanding the abolition of the performance bonus cap, as well as the allocation of 15% of operating profit as performance bonus resources. Some in the industry estimate that, based on projections for Samsung Electronics’ operating profit this year, it would be possible to pay each employee in the semiconductor division a performance bonus worth hundreds of millions of won.
In contrast, the company has maintained its position that while it can pursue top-tier industry compensation through special incentives and other means, institutionalizing the abolition of the performance bonus cap is something it cannot accept.
If this post-mediation process also ends without an agreement, the prospect of a second large-scale strike in Samsung Electronics’ history is expected to become a reality. During the 2024 strike led by the National Samsung Electronics Union, participation was limited and production disruptions were minimal, but analysts say this time the situation is different.
The membership of the super-enterprise union has grown to approximately 73,000, and there are observations that actual strike participation could reach between 30,000 and 40,000 workers. The industry believes that if the union goes ahead with a general strike from May 21 through June 7, the damage resulting from production disruptions and supply delays could expand to tens of trillions of won.
Global investment bank JPMorgan also noted in a recent report that if the strike is prolonged, Samsung Electronics’ annual operating profit could decline by more than 40 trillion won.
Meanwhile, coinciding with the resumption of labor-management talks at Samsung Electronics, the American Chamber of Commerce in Korea expressed concern that the union’s strike could have an adverse impact on Korea’s investment environment. As semiconductors have positioned themselves as a core strategic industry in the era of AI transformation, warning signals are growing louder both domestically and internationally regarding disruptions to global supply chains and damage to industrial stability.
The American Chamber of Commerce in Korea issued a statement on May 11 expressing concern over the potential impact that the Samsung Electronics labor-management conflict and the possibility of a strike could have on Korea’s long-term investment competitiveness. It is highly unusual for the country’s largest foreign chamber of commerce, with more than 800 member companies, to take a position on a specific company’s labor-management dispute — a fact that speaks to how seriously the Samsung Electronics strike issue is being taken not only domestically but across the global business community.
The American Chamber of Commerce in Korea stated: “Samsung Electronics plays a critical role in global supply chains in the production of memory semiconductors essential to AI infrastructure, cloud computing, advanced manufacturing, automotive, and energy industries,” adding, “In particular, as AI-related computing demand expands rapidly, the operational stability of Korea’s semiconductor industry is becoming an increasingly important factor for global companies and major supply chain partners.”
It further noted: “Should significant production disruptions or operational uncertainty arise at Samsung Electronics, concerns are expected to grow regarding supply bottlenecks, price volatility, procurement stability, and overall supply chain reliability as the burden on the global memory semiconductor market intensifies.”
The statement conveys that a significant number of American Chamber of Commerce in Korea member companies rely heavily on a stable South Korea-based semiconductor supply chain, and that if Samsung Electronics were to experience actual production problems, they could suffer cascading damage. More specifically, major global technology companies including Microsoft, Meta, Google, Apple, Amazon, Oracle, Qualcomm, Dell, HP, and IBM are heavily dependent on Samsung Electronics’ memory semiconductors including DRAM, NAND flash, and HBM (High Bandwidth Memory) for core business areas such as data centers, smartphones, PCs, servers, and AI accelerators.
In particular, American Chamber of Commerce in Korea member companies in the semiconductor and display equipment and materials sectors such as Applied Materials, Lam Research, ASML, Corning, DuPont, and 3M could suffer serious damage to their businesses. These companies serve as key global partners supplying equipment and materials to major manufacturing sites in Pyeongtaek and Hwaseong, and a halt in production line operations would inevitably affect not only their sales revenue but also future investment plans.
For this reason, it is understood that some global companies have already conveyed their concerns directly to Samsung Electronics regarding the possibility of supply disruptions resulting from the strike.
Ultimately, this also threatens Korea’s own competitiveness. The American Chamber of Commerce in Korea pointed out: “Labor uncertainty within key export industries could affect Korea’s standing as a stable and reliable global manufacturing, technology, and supply chain partner, as well as its competitiveness as a regional business hub.”
If uncertainty over supply security grows, Korean semiconductor companies risk losing customers. The American Chamber of Commerce in Korea noted: “As major companies diversify their production and procurement bases to reduce supply chain concentration risks, there is a possibility that competing nations could benefit as a result.”
In this regard, a business community official expressed concern, saying: “Bringing back a business partner that has already moved on is virtually impossible.”
This concern is also reflected in the American Chamber of Commerce in Korea’s recently released 2026 Korea Business Environment Survey. In that survey, Korea ranked third among Asian cities preferred by global companies as regional headquarters locations, dropping one place from its previous ranking, behind Singapore and Hong Kong.
Respondent companies cited labor policy and regulatory predictability, as well as a business environment aligned with global standards, as key factors influencing their regional headquarters and investment strategies.
American Chamber of Commerce in Korea President and CEO James Kim said: “Creating a stable and predictable business environment that meets global standards is a very important factor in positioning Korea as a key regional headquarters and investment hub in the Asia-Pacific region.”
Jung Suk-yee
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