Seoul: A group of shareholders of Samsung Electronics Co. has declared their intention to pursue legal action against a tentative wage agreement reached between the company and its labor union, which they deem illegal.

According to Yonhap News Agency, the agreement was finalized late Wednesday between Samsung and its largest labor union, successfully heading off an anticipated 18-day strike that was set to commence on Thursday. The dispute centered on performance-based bonuses, and the resolution has sparked discontent among some shareholders.

The shareholder group, voicing their disapproval at a rally near the residence of Samsung Electronics Chairman Lee Jae-yong in central Seoul, stated that the agreement "is legally void unless it goes through a general shareholder meeting resolution process." They argue that bypassing this process undermines shareholder rights and corporate governance.

In anticipation of a board resolution being proposed to finalize the deal, the shareholders have announced plans to initiate a lawsuit aimed at nullifying the agreement. Additionally, they intend to seek a court injunction to prevent its implementation.

Under the terms of the tentative agreement, Samsung has committed to allocating a special semiconductor performance bonus amounting to 10.5 percent of business performance earnings, a move that notably does not impose a cap. The labor union members are scheduled to vote on this agreement from Friday through Wednesday, determining its final approval.