Seoul: Samsung Electronics Co.'s board chairman on Tuesday expressed concerns over the potential economic impact of a planned general strike by unionized workers and called for the dispute to be resolved through dialogue, the company said.
According to Yonhap News Agency, Chairman Shin Je-yoon conveyed his apprehensions in a message posted on the company's intranet, emphasizing his sense of responsibility for the situation and apologizing for the anxiety it has caused. He noted that the worst-case scenario could lead to losses for both management and labor, potentially affecting the broader economy by weakening business competitiveness, eroding customer trust, and causing financial losses for shareholders and investors.
Unionized workers have announced plans for an 18-day general walkout from May 21 to June 7, demanding higher performance-based bonuses. Estimates suggest the strike could cost the South Korean tech giant up to 30 trillion won (US$20.3 billion).
Last month, Samsung Electronics reported an operating profit of 57.23 trillion won for the first quarter, a significant increase from 6.68 trillion won a year earlier, driven by strong demand for high-end memory chips used in artificial intelligence applications.
Shin further warned that the strike's impact could extend beyond financial losses, potentially causing lasting damage to customer trust and supply chains. He highlighted the importance of timing and customer trust in the semiconductor business, warning that delays or missed deadlines could undermine the company's competitiveness and market leadership.
He urged sincere dialogue to resolve the dispute and foster a constructive labor-management relationship. Shin's remarks come amid political concerns over the strike at the nation's largest company.
Last week, President Lee Jae Myung cautioned against excessive labor demands, suggesting they could harm both unions and the broader workforce. Industry Minister Kim Jung-kwan acknowledged Samsung Electronics' strong performance as a reflection of national efforts and contributions.
The union has reportedly demanded that the company allocate 15 percent of its operating profit to bonuses, with Samsung Electronics posting 57 trillion won in operating profit for the first quarter.