SEOUL, May 15 (AJP) - Top executives of Samsung Electronics failed Friday in an eleventh-hour attempt to avert a looming general strike after visiting the labor union office of the world’s largest memory chipmaker, whose exports alone account for roughly one-fifth of South Korea’s total outbound shipments.
Mindful of the government’s determination to prevent a strike at a company whose production disruption could cost billions of dollars in economic losses and tax revenues, Samsung’s C-suite moved directly to engage union leaders after government-mediated wage talks collapsed earlier this week.
The delegation, led by Vice Chairman and Device Solutions (DS) chief Jun Young-hyun, arrived at the office of the National Samsung Electronics Union (NSEU) at the company’s Pyeongtaek campus Friday afternoon. The executive team also included Foundry Business head Han Jin-man and System LSI chief Park Yong-in.
Shares of Samsung Electronics plunged 7.8 percent Friday to close at 270,700 won after nearing the 300,000-won milestone in the previous session, as investor sentiment deteriorated on disappointment over the labor impasse.
The visit followed a rare public apology issued by Samsung’s board of presidents earlier in the day, expressing “heavy responsibility” for the burden the prolonged labor dispute has placed on shareholders and the public.
Management said it remained willing to engage the union with an “unconditional” and “open” mindset and urged labor representatives to return to negotiations as soon as possible, raising hopes for a potential breakthrough.
Samsung emphasized that semiconductor manufacturing operates on a continuous 24-hour production cycle, warning that any work stoppage could inflict lasting damage on the company’s credibility and “trust assets” with global customers.
Despite the conciliatory tone and unusual high-level visit, the meeting ended on a negative note as both sides remained firmly entrenched ahead of the union’s planned strike beginning May 21.
Union leader Choi Seung-ho reportedly maintained a hard-line stance even after the government signaled it could consider invoking rarely used emergency mediation authority to prevent a strike viewed as harmful to the national economy.
“Employees have lost trust in management,” Choi reportedly told executives during the meeting, adding that the union would only consider returning to formal negotiations if Samsung presents a concrete agenda addressing its core demands regarding compensation and performance bonuses.
Choi also suggested that renegotiation could only resume after June 7, signaling the union’s determination to proceed with its planned 18-day strike beginning May 21. The union estimates that as many as 50,000 workers could participate.
The standoff comes at a sensitive moment for Samsung as the company attempts to regain momentum in the intensifying global AI semiconductor race.
Industry analysts warned that prolonged disruptions could carry risks extending beyond short-term production losses.
“Samsung Electronics is at a vital moment where it still has the opportunity to solidify its position as a top global leader,” a semiconductor industry analyst said. “With global tech companies such as Apple, Tesla and NVIDIA among its key customers, failing to meet orders because of an internal strike could become a lost opportunity that permanently damages its competitive standing.”
The government has also increased pressure on both sides to reach a compromise, warning that a large-scale disruption at Samsung could ripple through South Korea’s export-dependent economy at a time of heightened market volatility and geopolitical uncertainty.
With the union’s strike deadline approaching and no compromise in sight, the standoff between Samsung management and labor is expected to continue through the weekend as both sides weigh the economic and strategic consequences of a full-scale production disruption.
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