Samsung and Union to Resume Mediation as 46,000 Workers Prepare Possible Strike

Samsung Electronics Co. and its labor union will resume government-led mediation talks on Monday, May 19, 2026, at the National Labor Relations Commission's office in Sejong, 110 kilometers south of Seoul. The session comes just three days before the union's planned 18-day strike set to begin on Thursday, May 21, 2026.

Over 46,000 union members have expressed willingness to join the strike. Earlier mediation talks between the two sides broke down on Wednesday, May 13, 2026. In response, Samsung Electronics replaced its chief negotiator Vice President Kim Hyung-ro.

Yeo Myung-koo, head of the Device Solutions division's People Team, will replace him. Samsung Electronics Chairman Lee Jae-yong returned from an overseas business trip on May 16, 2026, and issued a public apology at Gimpo International Airport in western Seoul. "Now is the time to wisely gather our strengths and move in one direction," Lee said.

Lee added a direct appeal to customers. "I truly apologize to our global customers for causing worry and concern for our company's internal issues," he said, bowing multiple times. The apology followed heavy market pressure after talks collapsed.

66 percent on Friday. South Korea's benchmark KOSPI plunged 6 percent that day as traders reduced exposure to the semiconductor sector. South Korean officials including the labor minister, prime minister and finance minister urged both sides to resolve the labor issues.

The labor dispute centers on performance-based bonuses tied to earnings from the company's artificial intelligence-related semiconductor business. The union has demanded fixed performance bonuses equivalent to 15 percent of the operating profit generated by the semiconductor division and the removal of the payout cap.

Management proposed maintaining the current excess profit incentive system while allowing the bonus pool to be calculated based on either 10 percent of operating profit or economic value added (EVA).

Samsung Electronics also proposed introducing a special compensation system. The company said the change would help create a more flexible incentive structure. About half of all employees across the Samsung Group are union members, most of whom work in the semiconductor division.

Samsung's semiconductor fabs are highly automated. Market intelligence firm TrendForce noted that any strike would likely have limited impact on production but could cause noticeable disruptions to packaging and logistics, research and development, design, and customer relations. The talks resuming on May 19 represent a last-ditch effort to avert the strike.

Choi Seung-ho, head of the union, said employees joined the union as their trust in the company was broken. He called for efforts to restore that trust during the upcoming mediation. The union released a statement explaining that Samsung had replaced its negotiation team, and both sides planned separate meetings ahead of the Monday session.