Samsung Electronics Management Calls for Continued Union Talks as Strike Threat Looms

's top management on Thursday vowed to continue negotiations with the company's union to narrow differences over bonus increases. The move follows the union's announcement of plans to stage an 18-day general strike from May 21 to June 7. Samsung Electronics Vice Chairman Jun Young-hyun and President Roh Tae-moon, both co-chief executive officers of the company, made the appeal on the company's internal bulletin board.

Management and the labor union failed to reach a compromise over higher performance-based bonuses earlier that day. "Under the current challenging global business environment, all members of management will take a responsible approach to ensure that the company's future competitiveness is not weakened," they wrote.

" The labor dispute at Samsung Electronics, the world's largest memory chip maker and South Korea's most valuable company, has drawn attention to potential effects on production. A walkout could affect the semiconductor supply chain and the broader economy.

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. The increase was driven by strong demand for high-end memory chips used in artificial intelligence applications.

Some estimates suggest the South Korean tech giant could face losses of up to 30 trillion won, equivalent to $20.3 billion, if the strike takes place. Earlier on May 7, the labor minister urged Samsung Electronics management and the labor union to continue negotiations and reach a compromise.