Shin Je-yoon, chairman of Samsung Electronics' board, posted a public message to employees urging management and labor to resolve their dispute through dialogue.
In a post on the company's internal bulletin board on the 5th, Shin said he was concerned about the situation and felt a strong sense of responsibility.
"Many people, including shareholders and customers, as well as the public, are deeply worried about the company's recent situation," he wrote. "As board chairman, I feel a heavy responsibility and I am sorry for causing concern."
Shin warned that a worsening standoff could damage the company's overall competitiveness.
"Both labor and management could lose their footing," he said, adding that the fallout could include weaker business competitiveness, loss of customer trust, losses for shareholders and investors, and "serious negative effects" on the national economy.
He pointed to the semiconductor business as particularly vulnerable.
"In semiconductors, a foundational national industry, timing and customer trust are key," Shin wrote. He said disruptions in development and production, or missed delivery deadlines, could undermine core competitiveness and lead customers to shift to rivals, eroding market dominance.
Shin also warned of broader economic consequences if a strike leads to heavy losses and customer departures.
If the company's value falls, he said, it would cause serious losses for shareholders, investors, employees and local communities. He added that exports could drop by "hundreds of billions of dollars" and tax revenue by "tens of trillions of won," and that a weaker currency could reduce GDP.
Inside Samsung Electronics, tensions have continued over wages and the performance-based pay system, with some unions leaving open the possibility of labor action. The standoff has persisted as the sides have failed to narrow differences in negotiations.
Shin called for cooperation and talks.
"Now is the time for all employees to unite for sustainable growth amid relentless competition and to resolve issues through sincere dialogue," he wrote. He urged employees to work together so the current conflict can become a foundation for a more constructive labor-management relationship, adding that he would do his best to work with management to find a solution.
The message is notable as a case of the board directly stating its position on the labor dispute, and it could influence the course of negotiations.
* This article has been translated by AI.
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