United Workers Threaten National Strike, Conglomerate Finally Relents

Samsung’s chip division workers have finally secured a year-end bonus after a last-minute agreement between the union and the company to avert a mass walkout previously planned to start on 21 May 2026 for 18 days. In total, around 40 trillion won ($31.3 billion) will be distributed to employees in the semiconductor division, according to Finance Yahoo on Friday, 22 May 2026. There are about 78,000 people employed in the semiconductor division. Bloomberg calculations based on assumptions and projected operating profit for 2026 suggest an average payout of about 513 million won per worker. By comparison, last year, based on company filings in March, Samsung employees received an average of 158 million won. Other estimates, including from Yonhap News Agency, put potential memory division payouts at around 600 million won per person. Samsung did not disclose the exact number of employees in various semiconductor divisions. Samsung has agreed to distribute 10.5% of profits as a bonus in shares, and 1.5% in cash. The distribution forms part of a provisional agreement that still requires union approval. The new bonus programme will continue for 10 years, contingent on meeting profit targets. Analysts expect the company’s operating profit this year to grow sevenfold to 333 trillion won. Threat of Mass Walkout Earlier, Samsung’s workers’ union threatened to stage an 18-day mass strike starting 21 May 2026, with some 48,000 workers reportedly staying away from work. The threat followed repeated negotiations between management and the union over the wage-and-bonus scheme, with the government of South Korea stepping in to mediate. The dispute centred on Samsung’s bonus system, which the union says is overly complex and lacks transparency and legal safeguards. They want 15% of total operating profit allocated to incentives for workers in the semiconductor division, aligned with performance, but the final deal sets aside 10.5% as described above. The union’s demands come after Samsung posted strong results with a market capitalisation surpassing US$1 trillion, buoyed by the global memory-chip shortage that has benefited Samsung, the world’s largest supplier of memory chips. If a strike had occurred, it would have had a significant impact on the South Korean economy, as Samsung contributes about a quarter of the country’s export revenue. The agreement brings relief for South Korea, with a mass walkout by Samsung workers seen as potentially harming the national economy and disrupting the global memory-chip supply chain.