Jakarta, CNBC Indonesia - When workers unite, conglomerate giants are\npowerless. This was evident in South Korea.<\/p>\n
Samsung workers\u2019 threat of an 18-day mass strike ultimately forced\nmanagement to concede, agreeing on a win-win solution.<\/p>\n
Workers demanded fair and transparent pay and bonus schemes as\nSamsung\u2019s chip division recorded stellar performance. Soaring demand for\nadvanced AI chips triggered a global memory chip shortage, driving\nprices to unprecedented levels.<\/p>\n
Consequently, a global memory chip shortage led to sky-high price\nincreases. Samsung\u2019s market capitalisation reached $1 trillion due to\nhigh demand for memory chips.<\/p>\n
However, this positive performance did not translate into improved\nworker welfare. Unions demanded Samsung remove the 50% annual salary cap\non bonuses and allocate 15% of annual operating profits to bonuses,\nseeking formalisation of these changes over a year.<\/p>\n
Negotiations with Samsung were protracted, but a last-minute\nagreement was reached, postponing the planned mass strike set for 21 May\n2026.<\/p>\n
Under the new agreement, Samsung is expected to allocate around 10.5%\nof its operating profits to special bonuses for the chip division,\nincluding memory and logic chip businesses, according to the unions.<\/p>\n
However, the deal faces new challenges. Non-chip divisions argue that\nthe hefty bonuses only apply to certain employees in the chip division\nunder various conditions.<\/p>\n
Meanwhile, smartphone and home appliance divisions do not receive\nsimilar benefits.<\/p>\n
Companies Reap Big Profits, Workers Must Share the Wealth<\/p>\n
Amid ongoing disputes, South Korea\u2019s government emphasises that\nAI-generated wealth must benefit society broadly, including improving\nworker welfare.<\/p>\n
This was stated by Deputy Prime Minister Bae Kyung-hoon, who noted\nthat the AI era raises broader questions about distributing\ntechnological wealth, whether AI exacerbates inequality, and if it leads\nto job losses.<\/p>\n
\u201cRecent management-worker conflicts are part of a broader trend,\u201d he\nadded, referring to Samsung\u2019s strike threat.<\/p>\n
According to Bae, such worker actions are unlikely to be one-off.<\/p>\n
\u201cIn the AI era, many tech giants will continue to grow. In this\nprocess, management-worker conflicts will persist. It is crucial to\nresolve conflicts wisely through dialogue,\u201d Bae said.<\/p>\n
He cited Hyundai, noting concerns about integrating Boston Dynamics\u2019\nAtlas robot into the automaker\u2019s manufacturing processes.<\/p>\n
Bae stressed that South Korea must not only create wealth through AI\nbut also ensure its proper use and societal impact.<\/p>\n
\u201cAI benefits must also be felt by the public,\u201d Bae said.<\/p>\n
He said Seoul is focused on building an inclusive AI society,\nensuring no one is left behind in the AI era.<\/p>\n
Market Worries Over Korean Official\u2019s Comments<\/p>\n
This followed a 12 May Facebook post by presidential aide Kim Yeong\nBeom proposing to distribute excess tax revenue from South Korea\u2019s AI\nand semiconductor sectors to the public, which triggered market\nvolatility.<\/p>\n
A subsequent official clarified that Kim\u2019s post reflected his\npersonal views, not formal government discussion.<\/p>\n
Bae, who also serves as South Korea\u2019s science and technology\nminister, was asked about the sharp market rise led by major firms like\nSamsung and SK Hynix due to the AI boom.<\/p>\n
Samsung\u2019s year-to-date gains have nearly doubled at 144%, while SK\nHynix has risen almost 200% since January. The Kospi index is up 86%\nyear-to-date in 2026, surpassing last year\u2019s 75% rise.<\/p>\n
When asked if tech sector profit concentration was a weakness, Bae\nreplied: \u201cWhile these companies have their strengths, there is also an\necosystem of related firms supporting semiconductor production.\u201d<\/p>\n
South Korea is also striving to build competitive advantages in\nphysical AI, Bae said, expressing confidence that Seoul can break into\nthe sector.<\/p>\n
Physical AI typically refers to AI embedded in machines such as\nrobots, vehicles, and industrial systems, enabling them to sense,\nreason, and act in the real world.<\/p>\n
\u201cIn a sense, semiconductors and AI infrastructure provide the\nfundamental foundation. Beyond that, Korea is attempting to build a full\nspectrum of AI capabilities, including various hardware, software, and\nrelated services,\u201d he explained.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/learning-from-korea-companies-reap-big-profits-workers-must-share-the-wealth-1780137015", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }