Massive Labour Protests: Government Warns Economy Could Collapse

The Samsung Electronics workers’ union in South Korea stated on Friday (15 May) local time that the company has proposed resuming talks without preconditions. This comes days after government-mediated negotiations on wage and bonus schemes failed to reach an agreement. The union said it is willing to hold discussions after 7 June 2026 but will maintain its plan for a work stoppage starting 21 May 2026. This could disrupt production for the world’s largest memory chip manufacturer. The strike is occurring amid a global memory chip shortage crisis that has impacted price surges in consumer electronics such as mobile phones, laptops, gaming consoles, and household appliances. Samsung Electronics issued a statement confirming its offer for unconditional talks, though it did not immediately provide further comment. The union stated on Thursday (14 May) local time that it would sit down for talks if the company submits a detailed proposal addressing the union’s demands by 01:00 GMT or 08:00 WIB on Friday (15 May). South Korean government officials, including the prime minister and finance minister, have voiced concerns that the strike at Samsung must be avoided at all costs. The government warned that it could pose significant risks to economic growth, exports, and markets. Samsung Electronics shares fell 2% in morning trading following the company’s proposal for unconditional talks, compared to a 1.1% decline in the benchmark KOSPI index.