"Up to 100 Trillion Won in Losses Feared, It's Not About Second Place but Catastrophe"... Industry Minister: 'Emergency Mediation Unavoidable If Samsung Strike Occurs'

Up to 100 Trillion Won in Damages Feared if Wafer Processing Disrupted
Labor and Management Must Resume Talks Given Semiconductor Industry's Impact

Minister of Trade, Industry and Energy Kim Jung-kwan stated that if the Samsung Electronics union's planned general strike becomes a reality, invoking emergency mediation would be unavoidable. He emphasized that given the semiconductor industry's impact on the national economy and supply chains, both labor and management must resume dialogue as soon as possible.

On May 14, through a post on his social networking service (SNS) account, Minister Kim said, "It is deeply regrettable and concerning to hear that unless labor and management reach an agreement, a general strike will begin on the 21st," adding, "I earnestly urge both sides to resume talks without delay."

He continued, "Considering the gravity of this issue and its potentially unimaginable repercussions, a strike must be prevented at all costs. As the Minister of Trade, Industry and Energy, I believe that should a strike occur, emergency mediation would be inevitable." Emergency mediation is an authority that can be exercised by the Minister of Employment and Labor when a labor dispute threatens to significantly harm the national economy. Once emergency mediation is enacted, the union must suspend all industrial actions for 30 days.

Minister Kim also highlighted Samsung Electronics' significance within the South Korean economy. He explained, "The importance of Samsung Electronics to our economy cannot be overstated. The company's performance and stock price directly affect the lives of our people, including more than 4.6 million shareholders and, through various pension funds such as the National Pension Service, the wider public."

He particularly assessed Samsung Electronics' semiconductor business as South Korea's unrivaled growth engine and a core strategic asset. Minister Kim warned, "If we lose competitiveness, it is not a matter of falling to second place—survival itself becomes difficult and we could plummet. Should a strike occur in such circumstances, it would inflict irreparable economic damage."

Minister Kim pointed out that disruptions in wafer processing could result in losses of up to 100 trillion won, and more than 1,700 partner companies could also suffer substantial damages. He warned that if trust in the global supply chain is undermined, it could lead to irreversible losses for the South Korean economy and impact jobs and incomes as well.

He called on both labor and management to act responsibly. Minister Kim stated, "Management should offer reasonable compensation, while labor should seek a rational distribution that does not undermine the company's future and sustainability. As a leading national enterprise, I sincerely ask that both labor and management at Samsung Electronics live up to the earnest expectations of the Korean people, numerous domestic and international customers, and investors."

This content was produced with the assistance of AI translation services.