Prime Minister Kim: "Samsung Electronics Strike Could Cause 1 Trillion Won Loss Per Day, Up to 100 Trillion Won Total... Tomorrow's Negotiation Is the Last Chance" (Comprehensive)

Government Issues National Statement After Second Emergency Ministerial Meeting
Policy Chief, Labor and Industry Ministers Attend

The government has strongly urged both labor and management at Samsung Electronics, just four days before the announced general strike, to abandon the extreme option of a strike and resolve the crisis through dialogue and compromise. Citing concerns that a strike could result in an economic catastrophe—up to 1 trillion won in direct losses per day and up to 100 trillion won if production is completely paralyzed—the government has made it clear that it will deploy all available measures to protect the national economy, including invoking the 'emergency adjustment right.'

Prime Minister Minseok Kim delivers a national address regarding the Samsung Electronics strike on the 17th at the Government Seoul Complex in Jongno-gu, Seoul. Photo by Yonhap News.

On May 17, Prime Minister Minseok Kim delivered an 'emergency national statement regarding labor-management relations at Samsung Electronics' at the Government Seoul Complex, accompanied by Policy Chief Changryul Yoon, Minister of Employment and Labor Younghoon Kim, and Minister of Trade, Industry and Energy Jeonggwan Kim. Ahead of the statement, the government convened the 2nd emergency ministerial meeting in the morning to discuss in depth the potential ripple effects of a Samsung Electronics strike across the domestic industry and possible countermeasures.

"1 Trillion Won in Direct Losses Per Day... Up to 100 Trillion Won in Damages if Wafers Are Discarded"

Prime Minister Kim described the current situation as "an extremely grave crisis," warning of astronomical economic damage if a strike occurs. He explained, "Given the nature of semiconductor production lines, where hundreds of ultra-precision processes must be performed in sequence, even a brief halt would require all in-process products to be discarded." He expressed concern that "even a single day of factory shutdown could result in up to 1 trillion won in direct losses, and if wafers are discarded, damages could reach as much as 100 trillion won." Restarting and stabilizing a halted production line would take months, causing losses to snowball even further.

In reality, Samsung Electronics is a key pillar of the Korean economy, accounting for 22.8% of national exports and 26% of total market capitalization. Prime Minister Kim pointed out, "A production setback at Samsung Electronics, which involves 120,000 employees and more than 1,700 partner companies, would lead to decreased exports, financial market instability, and worsening employment, leaving deep scars throughout the national economy."

"Golden Time for the World's First HBM4 Mass Production... Cannot Surrender Leadership Due to Internal Strife"

The government especially emphasized that this is a critical period that will determine the outcome of the global artificial intelligence (AI) semiconductor race. In February this year, Samsung Electronics succeeded in mass-producing HBM4 (6th-generation high-bandwidth memory) for the first time in the world, and, in the foundry (semiconductor contract manufacturing) business, has continued to win contracts from global big tech companies—reaching a crucial turning point toward returning to profitability.

Prime Minister Kim warned, "We have just entered a full-fledged growth phase and must lead the rebound of the national economy," and cautioned, "If we come to a standstill due to internal conflict while global companies are fiercely competing with investments, we will hand over our hard-won strategic advantage to competing nations." He stressed that once lost, market dominance is extremely difficult to regain.

Government Welcomes Agreement to Resume Mediation Talks on the 18th... "If the Strike Proceeds, All Measures Including Emergency Adjustment Will Be Considered"

However, the government expressed sincere appreciation for the agreement reached after the Minister of Employment and Labor met directly with both union and management to persuade them, resulting in both sides agreeing to resume negotiations (post-mediation by the Central Labor Relations Commission) on May 18.

Nonetheless, Prime Minister Kim warned that "the negotiation on the 18th is effectively the last chance to prevent the strike," and sternly cautioned both labor and management not to take this opportunity lightly. He called on the union to choose compromise over insisting on a strike, and on management to take responsible action by listening to the union's concerns. He further pressed Samsung Electronics to present a mutually beneficial solution in line with public expectations, emphasizing that its growth was made possible by extraordinary tax incentives from central and local governments and the support of the Korean people—making it "an achievement for all members of the Republic of Korea."

While the government reaffirmed its intention to continue supporting dialogue between labor and management, it also delivered a strong message that if a strike does materialize and is feared to cause massive economic damage, it will not hesitate to take legal measures. Prime Minister Kim concluded, "If the protection of the national economy is threatened by a strike, the government will have no choice but to consider every possible response permitted by law, including invoking the emergency adjustment right."

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