Once a source of self-deprecating humor, the term "Samsung after" referred to non-electronics subsidiaries, highlighting the allure of Samsung Electronics' performance and treatment. Recently, however, a new hierarchy has emerged within Samsung Electronics, deepening divisions among its business units.
Concerns are growing that the discontent among employees in other divisions toward the Device Solutions (DS) sector's demands for average bonuses in the millions of won could harm organizational cohesion.
According to industry sources, labor disputes over excessive compensation demands from the DS sector's union are escalating, raising the possibility of a general strike. Meanwhile, employees in the Device Experience (DX) sector, feeling sidelined, are increasingly fatigued. While the DS sector thrives on rising demand for AI semiconductors, the DX sector, responsible for mobile, TV, home appliances, and telecommunications, struggles amid global consumer slowdowns and cost pressures.
In the first quarter, Samsung Electronics reported an operating profit of 57.2 trillion won, with the DS sector contributing 53.7 trillion won. The DX sector, excluding mobile, has seen stagnant or declining performance, with the home appliance division recording losses.
This performance gap is shaking organizational morale, as the semiconductor division has a stronger justification for demanding bonuses, while the DX sector is focused on cost-cutting and defending profitability. An industry insider noted, "The economic conditions for DS and DX within Samsung Electronics are completely different," warning that the bonus dispute could lead to feelings of relative deprivation between the divisions.
The rift is also manifesting as labor conflicts. The super-large union, dominated by DS members, is leading joint protests, while the DX-based union has withdrawn from the joint action committee. While this appears to be a difference in strategy, many in the industry interpret it as a buildup of dissatisfaction among DX members who feel excluded from DS-centric bonus negotiations.
Management has expressed concern as well. With fierce competition from rivals like SK Hynix and Micron, there is a growing fear that a strike could disrupt production and damage customer trust, especially as the company seeks to regain its competitive edge in high-bandwidth memory (HBM). On the same day, Vice Chairman Jeon Young-hyun and CEO Roh Tae-moon emphasized the need to ensure future competitiveness during wage negotiations.
Analysts suggest that Samsung Electronics faces a dual challenge: leveraging the semiconductor boom to strengthen overall competitiveness while also resolving internal conflicts.
A Samsung employee, who requested anonymity, remarked, "The push for a general strike is primarily driven by DS, leading to increased dissatisfaction among DX employees. Nowadays, it feels like DS and DX are different organizations with conflicting interests rather than parts of the same company."
* This article has been translated by AI.
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