As Samsung Electronics’ market value climbed past $1 trillion, some shareholder groups took to the streets to oppose the company’s union plan for a general strike. The groups called for a ban on the strike and said they would pursue tough measures, including damage claims, if an illegal strike occurs.
Industry officials said Wednesday that shareholder groups including the Shareholder Action Practice Headquarters hung banners and held a rally in the Hannam-dong area of Seoul’s Yongsan district opposing the union’s planned walkout.
The banners said the strike would “only give overseas semiconductor companies a windfall,” and included slogans such as “A strike in essential semiconductor processes is more serious than a strike by the military or police” and “Ban ruinous strikes that hold the national economy hostage through legislation.”
The groups said that if the union representing a majority of Samsung Electronics workers pushes ahead with a general strike starting May 21 and holds a rally near the Hannam-dong home of Chairman Lee Jae-yong on the first day, they will stage a counter-rally with more than 100 shareholders.
A day earlier, the Korea Shareholder Movement Headquarters warned it would seek damages from all union members if what it called an illegal strike damages key assets.
Calling the planned walkout “a self-destructive act that harms corporate value,” the group said that if a strike begins in an illegal form and damages the company’s core assets, shareholders would join forces to seek damages from all union members who participate, citing a legal theory of “infringement of third-party rights.”
The union has demanded performance pay equal to 15% of annual operating profit and has announced an 18-day general strike starting May 21. Based on market estimates of operating profit, the amount would total 45 trillion won.
Samsung Electronics on Wednesday became the second company in Asia to join the “$1 trillion market cap club.”
As of 2:30 p.m., shares were up 15.05% from the previous session at 267,500 won. Market capitalization rose to 1,563 trillion won, or about $1.0738 trillion.
That put Samsung Electronics above the $1 trillion mark, following Taiwan Semiconductor Manufacturing Co., the world’s largest foundry operator, with a market cap of $1.86 trillion.
* This article has been translated by AI.
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