President Lee Criticizes Samsung Electronics Union: "I Do Not Understand, They Must Not Cross the Line"

President Lee Jae-myung Presides Over Cabinet Meeting on May 20
"The Distribution of Operating Profit Belongs to Investors"

On May 20, President Lee Jae-myung delivered a pointed criticism targeting the Samsung Electronics labor union, stating, "They must not cross the line." He also remarked that the union's demand for a portion of the company's operating profit to be paid as performance bonuses was "incomprehensible."

During a Cabinet meeting at the Blue House that afternoon, President Lee said, "The three basic labor rights (the right to organize, bargain collectively, and take collective action) exist to protect workers, who are socially disadvantaged." He emphasized, "This power was not given to collectively force something through solely for the benefit of a few individuals." President Lee's remarks are interpreted as a direct criticism of the union over the breakdown of wage negotiations between Samsung Electronics and its labor union.

Yonhap News Agency

President Lee further explained, "Multiple stakeholders are involved in a company. There are investors who bear the burden of risk and potential losses," adding, "Because they shoulder losses and risks, they naturally have the right to share in profits." He continued, "It's good for some unions to work to achieve their interests, but there should be reasonable limits. It is investors and shareholders who receive distributions from operating profits."

The Samsung Electronics union has previously demanded that 15% of the company’s semiconductor operating profit be paid as performance bonuses. President Lee’s comments countered this, asserting, "The distribution of operating profit is the prerogative of investors."

President Lee also stated, "Even the government contributes to the growth and development of certain companies. We offer tax breaks and provide support through various institutional improvements, facilities, and diplomatic efforts." He further pointed out, "Is it acceptable, even before deducting taxes—which are the rightful share of the public—to institutionally allocate a certain percentage of operating profit? That's something investors themselves cannot do."

He went on to say, "Even investors only receive dividends from net income after taxes are deducted," adding, "I simply cannot understand the union's demand for a share of operating profit."

Additionally, President Lee said, "Ultimately, all responsibility for coordination lies with the government," and added, "It is important for members of society to observe reasonable limits and freely exercise their rights and expressions. When those boundaries are crossed, everyone must fulfill their responsibilities for the sake of the broader community."

President Lee Jae-myung is asking a question to Minister of Trade, Industry and Energy Kim Jong-gwan at the Cabinet meeting and Emergency Economic Inspection meeting held at the Blue House on May 20, 2026. Photo by Yonhap News

Earlier in the day, the National Labor Relations Commission announced that the second round of post-mediation between Samsung Electronics management and the union had collapsed. Although the government presented a mediation proposal, management expressed a reserved stance, and the parties failed to reach an agreement.

In a statement, Samsung Electronics said it "cannot accept the union's excessive demands." The company asserted, "The union insisted on compensation at a level that is difficult to justify socially, even for business divisions that are running in the red."

The union is planning to launch a general strike on May 21. The Samsung Electronics Union Joint Action Headquarters stated, "As scheduled, the labor union will lawfully begin a general strike tomorrow. We would like to make it clear that we will not stop working toward a settlement during the strike period."

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