PM Warns of Emergency Action Amid Samsung Strike Plans

Government Steps In to Prevent Economic Disruption

Prime Minister Kim Min-seok has expressed support for the resumption of negotiations between Samsung Electronics and its labor union, as a potential strike looms. The government is considering all possible measures, including emergency arbitration, to mitigate the impact on the national economy.

The planned strike by Samsung's largest labor union could begin in just four days, following a decision to resume government-led mediation talks. The two sides have been unable to reach an agreement over performance-based bonuses tied to the company's AI-related semiconductor business.

"The government sincerely welcomes the decision to resume dialogue," Kim said. "Monday's negotiations are effectively the last opportunity to prevent a strike. Both labor and management must never take the gravity of this meeting lightly."

Kim emphasized that a strike could cause serious damage to the national economy. He warned that the government may have to consider emergency arbitration to protect the economy from potential harm. Under South Korean labor law, the labor ministry can invoke an emergency adjustment measure that suspends strike action for up to 30 days if the strike is deemed likely to seriously harm the national economy or disrupt daily life.

Kim estimated that a strike could lead to a decline in exports, instability in financial markets, and contractions in investment and employment among numerous partner companies, with economic damage reaching up to 100 trillion won (US$66.98 billion).

"The government held the second emergency meeting of related ministers earlier today, where we closely reviewed the potential impact of the planned strike as a whole and discussed all possible response measures," Kim said. "The government will actively support dialogue to ensure that the situation does not lead to a strike under any circumstances."

Since the emergency arbitration system was introduced in 1963, the government has invoked the authority four times. If the measure is officially invoked this time, it would mark the first such case in 21 years. The most recent invocation took place in December 2005 during a strike by Korean Air Co., as the government sought to prevent major disruptions to transportation services and public inconvenience.

The union has demanded fixed performance bonuses equivalent to 15 percent of the operating profit generated by the company's semiconductor division, along with the removal of the payout cap. Samsung proposed keeping the current bonus system while making it more flexible by changing how bonuses are calculated and introducing a special compensation program.

Samsung Electronics Chairman Lee Jae-yong issued a public apology on Saturday for causing concern over the company's "internal" issues, while calling for unity within his company.

Meanwhile, the Federation of Korean Trade Unions (FKTU) criticized the union's actions, arguing that the dispute over bonuses should not be dismissed simply as "excessive demands," but rather viewed as a legitimate question about how profits generated by the company should be distributed.

The group also criticized recent discussions about invoking emergency arbitration rights, calling them "highly inappropriate."

"It is dangerous to attempt to apply emergency arbitration simply because of the large economic impact, as this could effectively set a precedent for restricting the right of workers at major corporations to strike," the FKTU said.