Samsung Electronics Shareholders' Group: "Operating Profit-Linked Bonus System May Violate Commercial Act Principles"

"We Will Pursue All Necessary Legal Procedures"
On the Demand to Specify Bonuses: "Directly Related to Shareholder Property Rights"
Shareholder and Litigation Group Recruitment Planned for May 21 General Strike

A group representing minority shareholders of Samsung Electronics has pointed out that the labor union's demand for a "15% of operating profit as a performance bonus" could conflict with the principle of capital adequacy and the legal doctrine of dividend distribution under the Commercial Act, stating that a uniform bonus payment mechanically linked to operating profit may be problematic.

The minority shareholders' group, the Korea Shareholders' Movement Headquarters, held a press conference on May 18 in front of the Korea Securities Depository in Yeouido, Seoul, stating, "The source and calculation method for employee compensation should be determined within a reasonable framework that does not harm the company's financial soundness or the interests of all shareholders," and added, "We strongly object to the uniform payment system and will follow all necessary legal procedures as needed."

The Samsung Electronics labor union is currently demanding the removal of the performance bonus cap set at "50% of annual salary" and wants to make it explicit that 15% of operating profit will be uniformly allocated as a performance bonus. The union has warned that, if these demands are not met, it will proceed with a general strike involving about 50,000 participants on May 21.

Minkyung Kwon, head of the Shareholder Movement Headquarters, is holding a press conference announcing a shareholder letter to Samsung Electronics in front of the Korea Securities Depository in Yeouido, Seoul on the 18th. Photo by Yonhap News.

The Shareholders' Movement Headquarters emphasized, "Including a '15% performance bonus' explicitly in the collective bargaining agreement is not simply a matter of wage negotiation, but a fundamental issue directly related to shareholders' property rights."

The group added that its objection to uniform payments is "not intended to antagonize either labor or management, but to protect the company's long-term value and the legitimate rights of all shareholders," and expressed support for fair compensation and improved treatment for employees.

The Shareholders' Movement Headquarters plans to recruit Samsung Electronics shareholders and nationwide litigants through the shareholder action platform "ACT" in line with the general strike scheduled for May 21.

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