Samsung Electronics board chair warns of economic fallout from planned strike

SEOUL, May 5 (Yonhap) -- 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.

"As chairman of the board, I feel a deep sense of responsibility for the current situation and apologize for causing concern," Chairman Shin Je-yoon said in a message posted on the company's intranet.

He warned that both management and labor could lose in a worst-case scenario, noting that such an outcome could hurt the broader economy, including weakened business competitiveness, loss of customer trust and losses for shareholders and investors.

Unionized workers earlier announced plans to stage an 18-day general walkout from May 21 to June 7, demanding higher performance-based bonuses.

Some estimates suggest the strike could cost the South Korean tech giant up to 30 trillion won (US$20.3 billion) if it runs from May 21 to June 7.

Last month, Samsung Electronics posted an operating profit of 57.23 trillion won for the first quarter, up from 6.68 trillion won a year earlier, on strong demand for high-end memory chips used in artificial intelligence applications.

Shin also warned that the impact could extend beyond financial losses, potentially causing lasting damage to customer trust and supply chains.

"In the semiconductor business, timing and customer trust are critical," he said. "Delays in development or production, or missed delivery deadlines, could undermine our core competitiveness and market leadership as customers turn to rivals."

He called for sincere dialogue to resolve the dispute and build a constructive labor-management relationship.

Shin's remarks come as political leaders have also voiced concern over the planned strike at the country's largest company.

Last week, President Lee Jae Myung warned that excessive labor demands could ultimately harm both unions and workers more broadly, although he did not name a specific company.

"If certain labor organizations face public outcry for excessive or unfair, self-serving demands, it would harm not only the unions themselves but other workers as well," Lee said during a meeting with senior aides at Cheong Wa Dae.

Industry Minister Kim Jung-kwan said Samsung Electronics' strong performance reflects not only the company and its workers but also broader national efforts and contributions.

The union has reportedly demanded that the company allocate 15 percent of its operating profit to bonuses.

Samsung Electronics posted 57 trillion won in operating profit for the first quarter.