Samsung Electronics faces final labor talks amid strike threat

May 12, 2026, 09:43 am

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A post-mediation meeting between Samsung Electronics management and labor representatives continues late into the night at the National Labor Relations Commission building in Sejong on May 11. /Yonhap

Samsung Electronics management and labor representatives are set to hold a final post-mediation meeting on Tuesday, a session widely viewed as the decisive moment in determining whether the union will proceed with a strike despite the ongoing semiconductor boom.

According to industry sources, the two sides will begin their second post-mediation meeting at 10 a.m. at the Central Labor Relations Commission in Sejong.

The talks are expected to continue for hours after Monday’s negotiations lasted 11 hours and 30 minutes without producing a meaningful agreement.

The union is demanding the removal of the cap on performance bonuses and is calling for 15% of the company’s operating profit to be allocated as a source for incentive payments. It is also strongly pushing for the system to be institutionalized.

Management, however, has maintained that formalizing such a system would be difficult, raising expectations that a mediation proposal from the labor commission could play a key role in narrowing differences.

If negotiations collapse and the planned strike goes ahead, estimated losses could reach as much as 30 trillion won.

JPMorgan Chase projected that Samsung Electronics’ operating profit could fall by up to 12% this year if management accepts the union’s demands. Meanwhile, Citigroup lowered its target price for Samsung Electronics shares from 320,000 won to 300,000 won, citing labor dispute risks.

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