The small business sector expressed concerns that the recent wage agreement between Samsung Electronics and its labor union will exacerbate the wage and benefits gap between large and small enterprises.
In a statement released on May 21, the Korea Federation of Small and Medium Businesses noted, "The conclusion of this negotiation is significant as it alleviates concerns over production disruptions at a major company that has a substantial impact on our economy amid intensifying global semiconductor competition."
However, the federation added, "Small business workers and employers feel heavy-hearted watching the negotiations, and there are lingering doubts about whether fair compensation and rewards have been provided to partner small businesses amid discussions of performance bonuses amounting to hundreds of millions of won."
On the night of May 20, Samsung Electronics and its labor union signed a tentative agreement on the 2026 wage negotiations at the Gyeonggi Provincial Labor Office in Suwon. The agreement maintains the existing Excess Profit Performance Incentive (OPI) and introduces a special management performance bonus system for the semiconductor (DS) division. The OPI will be paid based on business performance selected by mutual agreement, while the special management performance bonus for the DS division will be set at 10.5% of the agreed business performance.
The Korea Federation of Small and Medium Businesses pointed out, "The deepening polarization between large and small enterprises is one of the most serious issues in our society," emphasizing that small business workers earn only half of what their counterparts in large companies make, with even larger gaps in bonuses and benefits.
It further stated, "The competitiveness of our country's semiconductor industry, recognized as a global leader, is the result of thousands of partner companies and small businesses in materials and components working together as one team, and the contributions and roles of these partner small businesses must be fairly evaluated." The federation expressed hope that Samsung's promised co-growth measures would lead to effective strategies that promote research and development, facility investment, and wage increases for partner companies.
* This article has been translated by AI.
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