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Samsung unions seek strike as company rebounds on semiconductor recovery

Published: 18 Mar. 2026, 19:32 Updated: 18 Mar. 2026, 19:51

Members of the National Samsung Electronics Union chant slogans during a rally calling for victory in a general strike held at Samsung Semicon Sporex in Giheung District, Yongin, Gyeonggi, on July 22, 2024. [NEWS1]

Samsung Electronics is facing a major labor crisis just as it looks to rebound on a semiconductor recovery, with unions moving toward an unprecedented general strike in May.

According to the joint strike headquarters of Samsung Electronics on Wednesday, 93.1 percent of participating members voted in favor of industrial action in a ballot held from March 9 to Wednesday.

Of the roughly 90,000 union members, 73.5 percent, or 66,019 members, took part in the vote, and 61,456 members had agreed to the May strike. The joint body includes the Samsung Electronics chapter of the Samsung Group United Union (SGUU), the National Samsung Electronics Union and Samsung Electronics Labor Union.

The union said it will hold a large-scale rally on April 23 to maximize solidarity and, if no progress is made, launch a full-scale general strike from May 21 to June 7 for 18 days.

It described the vote as “a declaration that the company’s proposal does not align with its ‘people-first’ management principle” and “a strong warning to management to take action.” Samsung Electronics said it would “do its best to reach an amicable conclusion in wage negotiations.”

If the strike materializes, it would mark the company’s second-ever strike since its founding in 1969, following a 25-day strike in July 2024, nearly two years ago. Most notably, the strike is expected to deal a significant blow to semiconductor production, the company’s core business.

Samsung Electronics' sixth-generation high bandwidth memory (HBM4) chips that has begun shipments to the company's key customers since February. [SAMSUNG ELECTRONICS]

“If the strike proceeds, semiconductor output could fall to about half of normal levels,” Choi Seung-ho, who leads the Samsung Electronics chapter of the SGUU, told the JoongAng Ilbo. “Rather than absorbing astronomical losses, the company should invest those resources in labor-management coexistence.”

In an earlier email to members, the union headquarters also said the company could incur losses of around 10 trillion won ($6.72 billion), while employees’ losses would total about 400 billion won.

At the center of the dispute is the removal of the cap on performance bonuses. Currently, Samsung Electronics’ cap on additional incentives tied to operating profits by business division is at 50 percent of annual salary.

In negotiations, management proposed allowing employees to choose between two calculation methods — 20 percent of economic value added or 10 percent of operating profit — whichever is more favorable, along with a comprehensive compensation package including low-interest loans totaling 500 million won. However, the union insisted the cap itself should be abolished, as seen at rival SK hynix, leading to a breakdown in talks.

The union is also reported to have demanded performance bonuses of around 450 million won per employee in the memory division, along with a total compensation system exceeding that of SK hynix.

A survey conducted in 2025 by the Samsung Electronics chapter of the Samsung Group United Union, the conglomerate's cross-affiliate union, among students at a cafe near the engineering building on Sungkyunkwan University’s Natural Sciences Campus in Suwon, Gyeonggi. The survey asks students which company they want to work at: the left column being Samsung Electronics and the right SK hynix. [SAMSUNG ELECTRONICS CHAPTER OF THE SAMSUNG GROUP UNITED UNION]

Management, however, maintains that such demands are difficult to accept, citing concerns over fairness among divisions and the urgent need to secure funds for massive facility investments and research and development to regain global semiconductor leadership. Vice Chairman Jun Young-hyun said at a shareholders meeting the same day that the company is “enhancing wage competitiveness through various compensation methods.”

Both inside and outside the company, there are concerns that the dispute could undermine Samsung Electronics’ efforts to restore its status as a semiconductor powerhouse.

After struggling in 2023 and 2024 following a failure to supply high-bandwidth memory chips to Nvidia, Samsung laid the groundwork for a rebound by successfully supplying them late last year. However, prolonged labor disputes could weigh on efforts to normalize its semiconductor business.

Ku Ja-hum, head of foundry technology development, also urged restraint in an internal email, saying, “At times, having the humility to step back helps sustain us longer.”

“The global semiconductor market is a ‘war without gunfire’ where not only companies but national fortunes are at stake,” a senior business official said. “A labor union at one of the highest-paying workplaces in the country, with an average annual salary of 150 million won, should act with a corresponding sense of social responsibility and work together toward future competitiveness.”

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.
BY KIM SU-MIN, LEE YOUNG-KEUN [[email protected]]