Samsung Electronics Labor-Management Reach Agreement, General Strike Postponed... "Deficit-Business Unit Allocation Deferred for One Year"

Official Signing of the 2026 Performance Bonus Tentative Agreement Between Labor and Management

Minister Kim: "Demonstrating Korea's Strength in Resolving Issues Through Dialogue"

Just one day before the planned general strike at Samsung Electronics, a dramatic tentative agreement was reached after direct mediation by Minister of Employment and Labor Kim Younghwan. The labor union has decided to postpone the general strike and put the tentative agreement to a vote among its members.

On the 20th, at the Gyeonggi Employment and Labor Office in Jangan-gu, Suwon-si, Gyeonggi-do, Yeomyeonggu, Head of People Team at Samsung Electronics DS (Device Solutions - Semiconductor Business), and Choi Seungho, Chairman of the Samsung Electronics Branch of the Samsung Group Super-company Labor Union, shook hands with Minister of Employment and Labor Kim Younghwan after signing a tentative agreement following wage negotiations at Samsung Electronics. Photo by Yonhap News

Minister Kim stated, "Supporting democracy means believing in the power of dialogue to solve the shared challenges before us," adding, "I am grateful that labor and management were able to reach a tentative agreement through autonomous discussions."

At around 10:40 p.m. on May 20, labor and management at Samsung Electronics officially signed a tentative agreement on the 2026 incentive plan at the Gyeonggi Regional Employment and Labor Office.

Choi Seungho, Chairman of the Samsung Electronics Branch of the Samsung Group Super-company Labor Union, said, "This agreement is the result of six months of dedicated struggle by the Super-company Labor Union and the Joint Struggle Headquarters," and added, "We will do our best to ensure stable labor-management relations at Samsung Electronics moving forward." He explained that the agreement was made possible because the company agreed to suspend the distribution method for deficit business units for one year.

Yeomyeonggu, Head of People Team at Samsung Electronics DS, said, "While upholding the principle that rewards follow results, we were able to generate and discuss ideas to find the optimal solution," and continued, "We have also been able to significantly specify the institutionalization of the special compensation system." He added, "We will ensure that this tentative agreement becomes the starting point for building a cooperative labor-management culture," and "The company will faithfully implement the agreed terms."

After the Central Labor Relations Commission's second post-mediation attempt failed, Minister Kim once again acted as a mediator, stating, "(This agreement) was above all thanks to the people who anxiously watched amid challenging internal and external conditions." He continued, "I hope the agreement is faithfully carried out, allowing Samsung Electronics employees to devote themselves to their work once again."

He remarked, "There were contentious issues, but the gap has narrowed," adding, "The company could not easily compromise on its principles regarding the distribution method, and the union had its own circumstances, but both sides made concessions to find a solution." He emphasized, "In a way, this is growing pains," and, "We have showcased the unique Korean strength of solving unprecedented crises through dialogue." Finally, Minister Kim said, "Just as Samsung is number one in both technology and labor relations, I hope it continues to handle these matters well."

As a result, the general strike scheduled for May 21 has been postponed until June 7. The union will conduct a vote on the tentative agreement. If the tentative agreement passes the union vote, the labor-management conflict at Samsung Electronics, which has lasted nearly six months, will come to an end.

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