In 2026, South Korea's industrial sector faces a significant challenge. The strike by Samsung Electronics' labor union and the debate over performance bonuses have transcended mere labor disputes, raising profound questions about the structure of South Korean industrial capitalism, its future competitiveness, and the new distribution order in the age of artificial intelligence (AI).
Recently, Samsung Electronics reached a final agreement in labor negotiations, addressing wage increases, adjustments to performance bonuses, expanded welfare, and improvements in certain working conditions, temporarily averting a major conflict. However, this situation is not just an internal issue for one company. The labor issues at Samsung Electronics and SK Hynix, two of the world's largest memory semiconductor companies, are directly linked to global supply chains, international capital markets, national industrial strategies, and the overall trust in the South Korean economy.
The world is currently in the midst of a semiconductor supremacy battle driven by AI. Companies like Nvidia and AMD in the U.S., TSMC in Taiwan, China's state-led semiconductor initiatives, and Japan's semiconductor revival strategy are all in a fierce competition. Semiconductors are no longer merely electronic components; they are now integral to national strategic industries, connecting military, security, AI, data centers, automotive, aerospace, and quantum computing.
In this context, news of the strike at Samsung Electronics has sent shockwaves through global financial markets and among supply chain investors. Foreign capital is particularly sensitive to questions beyond mere wage levels, such as, “Is South Korea's advanced industrial supply chain stable?” and “Can key companies in the AI era maintain long-term predictability?”
Indeed, global capital markets prioritize stability and predictability. The semiconductor industry requires long-term investments amounting to tens of trillions of won. Massive capital is being funneled into Samsung Electronics' Pyeongtaek campus, its Texas Taylor facility, and the expansion of next-generation HBM and AI memory lines. The payback period for these investments can span several years to over a decade. This industry cannot be swayed by political slogans or short-term sentiments.
At the same time, the role of labor has changed dramatically. The semiconductor industry in the AI era is not merely about assembly work. Processes such as extreme ultraviolet (EUV) lithography, HBM design, AI packaging, and ultra-fine process operations require a highly skilled workforce of top engineers and technicians. Today, labor is not just a cost item; it is a core strategic asset.
Therefore, the labor conflict at Samsung Electronics should not be viewed as a zero-sum game. Labor must be respected for its contribution to a company's sustainability, and companies must acknowledge the dignity and contributions of their workers. Both sides must operate within global standards. Samsung Electronics and SK Hynix are not only South Korean companies but also global enterprises. Their labor relations must now be managed under international criteria and investor trust.
One particularly noteworthy aspect of this debate has been the concept of 'residual claimant' logic. The discussion revolves around the question, “Why do only shareholders have residual claims?” This issue touches on the very essence of modern corporate structure.
Corporations are fundamentally built on a symmetrical structure of risk and reward. Creditors receive agreed-upon interest in exchange for relinquishing excess profits. Workers gain agreed-upon wages and job security while limiting their exposure to loss risks. The state recoups the costs of providing social infrastructure through taxation. Ultimately, it is the shareholders who bear the remaining profits and losses.
This is why shareholders are referred to as 'residual claimants.' When a company generates substantial profits, they receive the last remaining share, but conversely, when a company collapses or stock prices plummet, they are the first to absorb the losses.
During the semiconductor downturn in 2023, Samsung Electronics' operating profit plummeted. However, employee wages were not significantly cut, and payments to partner companies were largely maintained. Yet, the company's market capitalization fell sharply, resulting in losses for many individual investors and the National Pension Service. It is during such moments that the entity ultimately absorbing risk in a capitalist structure becomes evident.
Nonetheless, the contributions of labor cannot be overlooked. In fact, in the AI era, human creativity and collective knowledge are becoming central to corporate value. Today, the value of semiconductor companies does not stem merely from factory buildings but from research and development capabilities, design expertise, production experience, and long-accumulated organizational culture.
Thus, the question is not “Who will take it all?” but rather “How can we share in a sustainable manner?” This is why global companies are strengthening stock options, long-term performance bonuses, employee stock ownership plans, and performance-linked compensation systems. Workers are not just costs; they are partners in corporate growth.
However, labor must also confront the harsh realities of the global capital market. The competitors of Samsung Electronics and SK Hynix are not domestic firms but national strategic industries from the U.S., Taiwan, China, and Japan. Notably, China is mobilizing state capital to achieve semiconductor independence, while the U.S. is injecting substantial subsidies into its domestic semiconductor industry. Taiwan's entire economy is centered around the TSMC ecosystem.
If South Korea's industry continues to engage in internal conflicts, the ultimate victims will be both labor and companies. A decline in industrial competitiveness will lead to fewer jobs and undermine the foundation of the national economy in the long run.
Here, it is essential to address the concepts of CAPEX (Capital Expenditure) and OPEX (Operational Expenditure). CAPEX refers to capital expenditures for the future, such as factory expansions, semiconductor equipment investments, next-generation technology development, and AI infrastructure construction. In contrast, OPEX includes operational costs, such as labor, maintenance, energy, and management expenses.
The semiconductor industry is CAPEX-centric. Samsung Electronics and SK Hynix invest tens of trillions of won annually in future facilities. The price of a single state-of-the-art EUV machine can reach hundreds of billions of won. Building advanced packaging and AI memory lines requires astronomical capital.
The problem arises here. If demands for short-term performance distribution excessively increase, leading to a sharp rise in OPEX burdens, companies will reduce future CAPEX. This ultimately weakens long-term competitiveness. The semiconductor industry is not about sharing today's profits but about reinvesting the present to secure technological supremacy for the next decade.
In fact, one of the significant reasons for the decline of Japan's semiconductor industry was the collapse of its long-term investment structure. Conversely, Taiwan's TSMC has maintained a near-religious commitment to CAPEX, growing into the world's leading foundry company. Nvidia has also sustained decades of reinvestment in research and development and the AI ecosystem to achieve its current massive market capitalization.
Therefore, the labor issues at Samsung Electronics should not be approached solely as a short-term wage conflict. Labor must understand the company's future investment structure, and companies must design performance sharing more intricately. The key is to create a structure where all members share in the fruits of growth while maintaining future competitiveness.
In this context, President Lee Jae-myung's recent remarks at a Cabinet meeting offer significant insights. The President did not deny the very essence of labor rights. Instead, he clearly stated that labor rights are constitutional protections for the socially vulnerable. However, he also emphasized that exercising these rights must come with solidarity and responsibility.
The significance of President Lee's remarks lies not only in their policy messaging but also in his background as a former child laborer. He experienced the harsh realities of labor firsthand during his childhood in factories, understanding the struggles and imbalances of the Korean labor landscape during the industrialization era. This makes him a politician who symbolically comprehends both the urgency of laborers and the realities of corporate environments.
Brazilian President Luiz Inácio Lula da Silva, who recently visited South Korea, is also a globally recognized labor movement leader. Lula grew up in a poor labor class and factory settings. Despite standing on different continents, both leaders share a common understanding of the labor experiences during the industrialization era.
Interestingly, both have not remained confined to simple ideological labor movements. Since taking office, President Lula has pursued industrial development, investment attraction, and export expansion in Brazil simultaneously, balancing labor protection with industrial competitiveness.
President Lee Jae-myung, too, emphasized “solidarity and responsibility without crossing lines” during the current labor conflict at Samsung Electronics. This is a very pragmatic approach. Ultimately, the core messages presented by the President can be summarized in three points:
First, labor rights are constitutional rights and must be respected.
Second, the sustainability of companies and national industrial competitiveness must also be protected.
Third, exercising rights must always come with community responsibility and restraint.
This could serve as an important guideline for the future of labor relations in South Korea. While past labor relations in Korea have centered on confrontation and conflict, labor relations in the AI era must evolve toward mutual growth and shared responsibility.
In the future, AI will dramatically enhance productivity while fundamentally altering the structure of human labor. Some jobs will disappear, while others will be restructured into high-value-added areas. In such an era, mere wage struggles will not yield sustainable solutions.
Rather, a new form of social consensus will be necessary. Workers must contemplate structures that allow them to participate in the long-term performance of corporate growth, while companies must create human-centered innovation systems rather than merely focusing on cost reduction. The state must alleviate the shocks of industrial transition through taxation, welfare, education, and retraining systems.
Ultimately, the key to the AI era is a 'harmonious productivity revolution.' When labor and capital view each other as adversaries, industries decline. Conversely, when they recognize each other as partners in growth, innovation thrives.
South Korea stands at a critical crossroads. Samsung Electronics and SK Hynix are not just companies; they are strategic assets at the forefront of South Korea's industrial civilization. What collapses here is not merely the profit of a single company but the future industrial order and national competitiveness of South Korea itself.
Thus, what is needed now is neither incitement nor emotion but a sober recognition of reality and mature social wisdom. Labor must take responsibility, companies must take responsibility, and the state must take responsibility. Freedom without responsibility will not endure. Conversely, an industry devoid of hope and solely burdened by responsibility will lose its future.
The philosophy of 'solidarity and responsibility' emphasized by President Lee Jae-myung is likely to become a key keyword in the future model of labor relations in South Korea. The most important task for labor relations in AI-era South Korea is how to create an order of innovation and coexistence rather than conflict and destruction.
Industries do not grow solely through struggle. They do not grow solely through capital. When technology, labor, investment, innovation, responsibility, and trust move together, civilization advances. What South Korea needs now is not a winner-takes-all logic but a mature philosophy of an industrial community that can grow together while competing with the world.
※ This article was generated using generative AI and has been reviewed by an editor.
* This article has been translated by AI.
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