Samsung Faces 18-Day Strike as 48,000 Workers Prepare to Walk Out

Samsung Electronics is bracing for its worst-ever labor disruption after the company's largest union confirmed that nearly 48,000 workers will begin an 18-day strike on May 21. The walkout comes after last-ditch government-mediated talks over performance-based bonuses collapsed on Tuesday.

The union is demanding performance bonuses equivalent to 15% of Samsung's operating profit, the removal of bonus payout caps, and a formalized bonus structure. Samsung's management offered to allocate 10% of operating profit to bonuses and provide a one-time special compensation package, but the union rejected the proposal as insufficient.

The stakes are enormous. Samsung Electronics accounts for 22.8% of South Korea's exports, 26% of its total market capitalization, and 12.5% of the nation's GDP. South Korea's Prime Minister Kim Min-seok estimated direct losses could reach 1 trillion won ($665 million), with potential total economic losses rising to 100 trillion won ($66.5 billion) if chip production disruptions force Samsung to scrap semiconductor wafers already in production.

President Lee Jae Myung urged both sides to find common ground, posting on X that "labor must be respected as much as business, and corporate management rights must be respected as much as labor rights." The government has threatened to invoke "emergency adjustment" powers to suspend the strike for 30 days if it deems the dispute likely to cause significant economic harm.

Samsung shares initially rose 6.65% on Monday on hopes of a deal before paring gains to around 3%. The strike threatens to disrupt global semiconductor supply chains at a time when AI chip demand is surging.