Business groups have expressed concern over the Samsung Electronics union's plans to strike, urging the union to withdraw its strike announcement and return to negotiations. They warned that if a strike occurs, the government should consider invoking emergency measures to address the situation.
On May 18, six major economic organizations, including the Korea Employers Federation, the Korea Chamber of Commerce and Industry, the Korea Economic Association, the Korea International Trade Association, the Korea Federation of Small and Medium Businesses, and the Korea Federation of Medium Enterprises, issued a joint statement expressing deep concern over the union's insistence on its position despite efforts by the government and the Central Labor Relations Commission. They stated, "The union's strike threatens the foundation of a key national industry, and it must withdraw its strike plans and seek solutions through dialogue."
The business community called on the government to activate emergency measures immediately if a strike occurs, to prevent irreversible damage to the national economy and industrial ecosystem.
With semiconductor exports accounting for 37% of the country's total exports this year, the business sector warned that a strike by the Samsung union could lead to reduced exports, a worsening trade balance, and even a loss of tax revenue, adversely affecting the overall economy.
They also pointed out that a strike could significantly depress the domestic capital market, as Samsung Electronics accounts for about 25% of the KOSPI's market capitalization, potentially accelerating declines in the KOSPI index and foreign investor withdrawals.
The business community criticized the union's demands for performance bonuses, which they described as inappropriate and excessive, noting that a court had already ruled that such bonuses do not constitute wages. The union's demand for approximately 45 trillion won in bonuses exceeds four times the total shareholder dividends from the previous year, which could severely undermine the company's sustainable investment capacity and future competitiveness.
They argued that the issue of performance bonuses should be a matter of management judgment rather than a subject of collective bargaining, stating, "Excessive demands from some unions could deepen the dual structure of the labor market and increase social discord."
Furthermore, they noted that it is rare for global companies to have pre-agreed systems for distributing a certain percentage of operating profits to employees, emphasizing that decisions on how to utilize operating profits typically fall under the purview of the board of directors.
The business sector warned that a large-scale strike by the Samsung union could lead to national opportunity losses beyond mere labor disputes. Given the continuous operation required in semiconductor manufacturing, a strike could halt production lines, resulting in massive waste of wafers, equipment damage, and risks of chemical spills, leading to significant safety incidents.
The six economic organizations expressed concern that the impact of the strike would not be limited to Samsung Electronics but could spread to thousands of small and medium-sized partner companies and the broader semiconductor materials, components, and equipment industries. Industry insiders have raised alarms that the economic damage from this strike could reach up to 100 trillion won, a scale that could inflict severe harm across the Korean economy.
* This article has been translated by AI.
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