Minister of Trade, Industry and Energy Kim Jong-kwan urged for prompt dialogue between management and labor regarding the planned strike by Samsung Electronics' union, warning that urgent mediation may be necessary if the strike proceeds.
On May 14, Kim posted on social media, titled "I earnestly urge Samsung Electronics' management and labor to compromise," stating, "The date for the total strike at Samsung Electronics is approaching." He noted that while the Central Labor Relations Commission requested a resumption of talks, management agreed, but the union believes there is no reason for further discussions unless management changes its stance. He expressed concern, saying, "If an agreement is not reached, the union plans to begin a total strike on the 21st, which is regrettable and worrisome."
Kim emphasized Samsung Electronics' economic significance, stating, "The importance of Samsung Electronics to our economy cannot be overstated." He highlighted that the company's sales account for 12.5% of the national GDP and employs approximately 129,000 people, calling it a national representative company. He added, "One in ten citizens is a shareholder in this national enterprise," noting that Samsung's performance and stock prices directly affect the lives of citizens through various pension funds, including the National Pension Service.
Regarding the semiconductor industry, he expressed concern, calling it "almost the only core strategic asset of our country and a unique growth engine for the future." He stated, "The semiconductor industry is a winner-takes-all sector that competes based on investment speed and scale," emphasizing that continuous process innovation and large-scale investments are necessary for survival. He warned that competing nations are expanding their positions in the semiconductor market with strong government support and bold investments, stating, "The moment we lose our competitiveness, survival becomes difficult, not just finishing second, leading to a downward spiral."
Kim noted that a factory shutdown could result in production losses of up to 1 trillion won per day, and if all wafers currently being processed are damaged, potential losses could reach 100 trillion won. He also mentioned the impact on approximately 1,700 partner companies, the erosion of trust in the global supply chain, and the pressure on foreign clients to relocate their production facilities.
He stated, "What is more concerning than visible losses is the intangible national loss, such as damage to our economic credibility," reiterating the need to prevent a strike under any circumstances due to the seriousness and ripple effects of the situation. He added, "As the Minister of Industry, I believe that if a strike occurs, urgent mediation will be unavoidable."
Finally, he urged management to propose reasonable compensation and for the union to demand a rational distribution that does not undermine the company's future and sustainability, appealing to meet the expectations of citizens, domestic and foreign customers, and investors.
* This article has been translated by AI.
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