Samsung Strike: Estimated Losses Reach Hundreds of Trillions of Won
Samsung Electronics has begun emergency measures to reduce semiconductor production. The South Korean company is preparing to face the threat of its largest strike in history.
Jun Young-hyun, head of the Device Solutions (DS) division and vice chairman of Samsung Electronics, reportedly held an emergency meeting with executives to discuss the last chance to restore the company’s competitiveness amid the employee strike. Losses related to the Samsung strike are beginning to be felt. While direct and indirect losses could reach up to 100 trillion won (Rp1,000 trillion) if the dispute continues, according to industry observers.
Samsung executives issued a public apology, seeking to ‘engage in dialogue’ ahead of the upcoming employee strike. The Samsung Electronics union rejected the proposal, saying further talks could be held ‘after June 7, 2026,’ as reported by Joong Ang Daily on Saturday (May 16).
The government is expected to use emergency arbitration if the Samsung strike continues.
The Samsung strike began on Thursday (May 14) and will last until June 7, 2026. Despite a surge in the memory chip industry, Samsung Electronics faces internal and external risks, from conflicts between management and workers amid increasingly fierce global competition.
The union claims that the strike could result in losses of up to 1 trillion won per day, or up to 30 trillion won in total. However, some industry observers estimate that total direct and indirect losses, including damage to supply chain trust, loss of customers, costs of restarting production lines, and losses for partner companies, could reach 100 trillion won.
On Friday (May 15), Samsung Electronics attempted to resume negotiations by sending an official document to the union outlining the company’s position on the issues being debated.
Choi Seung-ho, chairman of the Samsung Electronics chapter of the Samsung Group Union, rejected the proposal, saying, “We will discuss this after June 7.” Choi also stressed that the planned strike is guaranteed by the Constitution. (H-4)