Seoul: Samsung Electronics Co. and its largest labor union are poised to resume government-led wage mediation talks on Wednesday morning, following unsuccessful marathon negotiations earlier this week, according to a state labor dispute resolution body.

According to Yonhap News Agency, the National Labor Relations Commission (NLRC) announced that the second round of mediation talks concluded at 12:30 a.m., with discussions scheduled to resume at 10 a.m. Concerns persist that a potential union strike could adversely impact South Korea's export-driven economy and disrupt the global supply chain.

The negotiations have been challenging, with both parties struggling to resolve differences on several issues, notably performance-based bonuses tied to the tech giant's earnings from its artificial intelligence-driven semiconductor business. NLRC Chairman Park Soo-keun noted, "There are various sticking points, and (the two sides) have not reached agreement on the most important one." He added that the management is expected to present its final position at the resumed talks.

Park also confirmed that the NLRC has proposed a mediation plan, emphasizing that the outcome of the negotiations could either result in an agreement or acceptance of the mediation proposal, as both are fundamentally similar. Should an agreement be reached, the talks are anticipated to conclude in the morning, allowing a union vote on the proposal.

The ongoing negotiations address key issues such as the removal of bonus caps set at 50 percent of annual salary and the distribution of performance bonuses to other loss-making business units. Failure to reach a deal or a union decision to reject it could lead to a strike on Thursday, as previously indicated by the union.

In the event of a strike, the government has the authority to invoke its emergency mediation right, a measure designed to halt industrial actions and initiate mediation procedures if there are concerns about potential harm to the national economy.