Samsung Strike Looms as Bonus Talks Collapse Amid Chip Boom

South Korea’s export economy and global memory-chip supplies face immediate pressure as nearly 48,000 Samsung Electronics workers prepare to begin an 18-day strike on Thursday. The walkout, representing about 38 percent of the company’s domestic workforce and concentrated in its memory-chip division, stems from a breakdown in performance-bonus negotiations that had continued under government mediation until Wednesday evening.

The central disagreement centers on how profits from Samsung’s record semiconductor results should be shared. The union accepted a final mediation proposal but still plans to proceed because management would not commit to removing the existing 50 percent cap on annual-salary bonuses and allocating 15 percent of operating profit to the bonus pool. Samsung countered that such terms would impose unsustainable costs on loss-making divisions and undermine management flexibility in a cyclical industry. Both sides have said they remain open to further talks.

Under South Korean law the labor minister can issue an emergency arbitration order that would suspend the strike for up to 30 days if the dispute is judged likely to harm the national economy. Prime Minister Kim Min-seok has warned of severe damage, while the Bank of Korea has estimated a possible 0.5-percentage-point reduction in annual growth and roughly 30 trillion won in losses. Industry projections of up to 100 trillion won in broader economic impact could not be independently verified across multiple sources. A Suwon District Court ruling already requires minimum staffing at safety-critical facilities and bars union occupation of key sites, limiting the strike’s operational reach.

Samsung accounts for roughly one-third of global DRAM supply and, together with SK Hynix, about two-thirds of the world’s memory chips. An extended stoppage would coincide with strong AI-driven demand and could tighten supply further, though analysts note that prior one-day actions in 2024 produced only modest output effects. Semiconductor exports already represented about 35 percent of South Korea’s first-quarter total of $219.9 billion. The two sides have scheduled no further formal sessions, leaving the timing of any government intervention as the immediate unresolved question.