A union official cited a company letter stating that Samsung Electronics Co., Ltd. proposed on Thursday that its South Korean union restart wage negotiations, following the collapse of government-mediated talks. The South Korean Labor Commission has also called for both sides to hold another government-mediated negotiation session on Saturday, aiming to avert a long-planned large-scale strike. Union representative Choi Seung-ho responded to Samsung's letter, stating that talks would be meaningless without institutional standardization and process transparency. The core demand is for Samsung to comprehensively reform its bonus system. Choi Seung-ho subsequently disclosed a reply sent to management on Thursday: if Samsung can present a detailed plan to implement the union's demands for a transparent and institutionalized profit-sharing mechanism, the union is willing to return to the negotiating table. The union stated that if no response is received from Samsung by 10 a.m. Friday (1 a.m. GMT), it will proceed with the strike as planned. Dissatisfied with a significant disparity in bonus treatment compared to chipmaker SK Hynix, the union has warned that if its demands are not met, it will launch an 18-day strike starting May 21. Samsung Electronics issued a statement saying that although the government mediation process has concluded, the company will continue communication and dialogue to ensure a smooth conclusion to the 2026 wage negotiations. South Korean Finance Minister Choo Kyung-ho stated on Thursday that a strike must be avoided at all costs, emphasizing that it would pose significant risks to South Korea's economic growth, exports, and markets. The South Korean economy is increasingly reliant on booming chip exports. Official data shows that semiconductors accounted for 37% of South Korea's total exports in April, a significant increase from 20% in the same period last year. JPMorgan noted in a research report that, given expectations of more employee participation, the production impact of this strike could exceed previous forecasts. The bank estimated that the strike could result in an operating profit loss of 21 trillion to 31 trillion won (approximately $140.8 billion to $207.9 billion) for Samsung and an opportunity loss in sales of about 4.5 trillion won. South Korean media outlet MoneyToday, citing industry sources, reported that due to the potential strike, Samsung had initiated a chip production reduction plan on Thursday. A Samsung official spokesperson declined to comment on the matter.
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