Seoul: Samsung Electronics Co. and its largest labor union are set to resume government-led wage mediation talks on Wednesday morning after failing to reach an agreement during two days of intensive negotiations earlier this week, according to the National Labor Relations Commission (NLRC). The talks, which aim to resolve differences over performance-based bonuses linked to the tech giant's artificial intelligence-driven semiconductor business, are scheduled to continue at 10 a.m.

According to Yonhap News Agency, the NLRC announced that the second round of mediation talks was adjourned at 12:30 a.m., with both labor and management striving to resolve their disagreements. Despite extensive discussions, the parties have not yet reached a consensus on key issues, including performance-based bonuses and their distribution across various business units.

NLRC Chairman Park Soo-keun noted, "There are various sticking points, and (the two sides) have not reached agreement on the most important one." However, he hinted that progress might have been made on some of the other contentious issues. Park also revealed that the commission has proposed a mediation solution, which could potentially lead to an agreement.

Park expressed optimism that a decision would be made soon, stating, "A decision will come today as to whether the two sides will adopt an agreement or a mediation proposal given that agreement and mediation are (essentially) the same thing." If an agreement is reached, the talks could conclude in time for a union vote to proceed later in the day.

Among the key issues being discussed are the elimination of bonus caps set at 50 percent of annual salary and the allocation of performance bonuses to other loss-making business units. Both parties are under pressure to find common ground to prevent a prolonged stalemate.