Samsung strike could trigger 100 trillion won losses

May 15, 2026, 08:40 am

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Samsung Electronics headquarters in Suwon, Gyeonggi Province. /Yonhap

Samsung Electronics is reportedly considering reducing semiconductor production ahead of a large-scale labor strike scheduled for May 21, as concerns mount over massive financial losses and disruptions to chip manufacturing operations.

Industry observers estimate that losses could exceed 100 trillion won ($72 billion) if the strike continues for an extended period, with some calling on the South Korean government to invoke emergency arbitration powers to prevent broader economic damage.

According to industry sources on Thursday, Samsung has entered an emergency management mode and is reviewing contingency plans, including cutting production volumes, ahead of the planned walkout by the company’s labor union.

The concern stems from the nature of semiconductor manufacturing, where even brief interruptions can severely damage production lines. If facilities stop operating during the strike, wafers already in the manufacturing process could deteriorate, potentially leading to serious quality issues.

The scale of possible losses has drawn attention to past incidents. In March 2018, a power outage at Samsung’s semiconductor plant in Pyeongtaek halted production lines for 28 minutes, causing estimated damages of around 50 billion won.

Kim Dong-won, an analyst at KB Securities, said in a recent report that even if the strike lasts 18 days, restoring automated semiconductor lines to normal operations could take an additional two to three weeks after the strike ends.

Earlier in the day, South Korea’s National Labor Relations Commission requested that Samsung management and the union resume post-mediation talks on May 16. Samsung also formally proposed restarting direct negotiations, but the union rejected the request and reaffirmed its intention to strike.

The Samsung Electronics branch of the Korean Metal Workers’ Union said it would return to negotiations only if management demonstrated a “clear willingness” to discuss issues including greater transparency in performance-based bonuses and the abolition of bonus caps.

The union demanded a direct response from Samsung’s top management by 10 a.m. on May 15, warning that without progress it would proceed with what it described as a “lawful industrial action.”

Business groups and industry officials are increasingly urging the government to invoke emergency arbitration powers, a measure that allows the labor minister to suspend strike activity for up to 30 days if a labor dispute is deemed likely to cause serious harm to the national economy.

#Samsung Electronics #labor strike #semiconductor production #emergency management #National Labor Relations Commission