Kim Jonggwan Questions "Are Samsung Electronics' Profits Solely Labor-Management Gains?"... Urges Mature Resolution Ahead of Strike (Comprehensive)

Responsibility for the Ecosystem Raised Over Samsung Electronics Strike Announcement

"Petroleum Price Ceiling to End Once War Is Over and Oil Prices Stabilize"

M.AX Acceleration Stressed... "Without It, the Industry Could Disappear"

Kim Jungkwan, Minister of Trade, Industry and Energy, is answering reporters' questions at a press briefing held on the 27th at the Government Complex Sejong. Ministry of Trade, Industry and Energy.

Kim Jungkwan, Minister of Trade, Industry and Energy, responded to the Samsung Electronics union's announcement of a strike by questioning, "Should the achievements of Samsung Electronics be considered solely the result of management and the engineers and workers who work there?" He called for mature judgment from both labor and management. He emphasized that semiconductors are a core industry that is connected to the entire national industrial sector, partner companies, shareholders, and local communities, and therefore, this issue cannot be viewed simply as a labor-management dispute within a single company.

At a press briefing held on the 27th at the Government Complex Sejong, Minister Kim highlighted the possibility of a strike at Samsung Electronics by stating, "Samsung Electronics is intertwined with numerous infrastructure, partner companies, more than 4 million minority shareholders, and even the National Pension Service's stake."

Minister Kim stressed that, given the characteristics of the semiconductor industry, it is necessary to consider not only the current distribution of profits but also future investment capacity. He stated, "Semiconductors are an industry that cannot survive without ongoing large-scale investments," and added, "It is essential to find a balance between how much profit is enjoyed now and how much is reserved to strengthen future competitiveness." He continued, "It raises the question of whether the company's profits should be distributed only among those working for the company, or if it should be an issue involving everyone who makes up the semiconductor ecosystem."

Minister Kim pointed out that "Semiconductors are the only industry in Korea that still maintains its competitiveness, but the gap is narrowing," and warned, "As seen in the cases of Intel and Japanese companies, once competitiveness is lost, it is difficult to recover." He emphasized, "While there is certainly a share that belongs to the workers, I hope that both labor and management will fully consider their respective roles and reach a mature conclusion."

Regarding the possible end of the price ceiling system for petroleum products, Minister Kim stated, "There is no predetermined end date," but clarified, "The basic policy is to end it as soon as possible if the war ends or oil prices stabilize."

Minister Kim compared the price ceiling system to a mosquito net in summer. He explained, "When a mother tells you to close the door because mosquitoes are coming in, and a father says to open the door because it’s hot, the son’s only option is to put up a mosquito net. Likewise, while the price ceiling system is not a particularly satisfactory measure, it is an unavoidable step to stabilize oil prices and reduce the burden on the public." He added, "Just as you close the door when the weather cools or open it when there are no more mosquitoes, the system can be ended once the situation stabilizes."

He said, "Controlling prices does not align with my personal beliefs. However, there is a clear market situation now that requires the implementation of the price ceiling system."

Regarding the exit strategy, he suggested several conditions. Minister Kim stated, "Ending the war is important, and after the war ends, it is vital to ensure that the flow of crude oil through the Strait of Hormuz returns to normal. In addition, we need to consider the introduction of an ex-post settlement system and the termination of exclusive contracts, which are currently being discussed in the National Assembly, as part of a broader restructuring of the domestic oil distribution system." He also noted, "What happens to oil prices is more important than the end of the war itself."

He also explained the background behind the consecutive freezing of the price ceiling in the third and fourth rounds. Minister Kim said, "During the third round, oil prices rose, but we kept the ceiling unchanged. This time, prices have fallen somewhat, but we also kept the ceiling unchanged. Previously, the burden was on reflecting the price increase; this time, the burden was on immediately reflecting the decrease. In the end, the decision was made to maintain price stability."

Regarding compensation for losses suffered by refiners, he explained, "The process is carried out by submitting documents through accounting firms and having them verified by the Cost Calculation Committee." Minister Kim added, "The decision will be made so that refiners neither make excessive profits nor suffer excessive losses. The intention is to compensate strictly for losses arising from the implementation of the price ceiling system."

In response to the gradual increase in gas station sales prices despite the price ceiling freeze, he explained, "The price ceiling applies to the supply prices from refiners, and any markup added by gas stations is determined through competition and public opinion in local communities." He added, "No gas station can excessively raise prices without facing criticism from the local community. Currently, I believe gas stations and consumers have reached a certain equilibrium."

He also addressed the issues of petrochemical industry restructuring and supply chain stability. Minister Kim stated, "The crisis in the Middle East raises concerns for the petrochemical sector, as the supply chain may be disrupted, from agricultural plastic films to syringes. There needs to be a social consensus on whether to rely on cheap imports or to use taxpayer funds to provide subsidies and retain essential items domestically."

However, he said the policy direction of shifting the petrochemical industry toward higher value-added remains unchanged. Regarding the restructuring of the petrochemical sector in the Ulsan region, he said, "This is not an issue for the government to intervene in, but rather, something that the industry itself should discuss autonomously. I am waiting and trusting the industry to do so."

On the topic of manufacturing artificial intelligence (AI) transformation (M.AX), he emphasized, "This is not an optional matter; if not pursued, the industry itself could disappear." Minister Kim explained, "AI factories, tacit knowledge projects, and workforce development must proceed together. The demo factory to be established in Changwon will serve as a place for companies to envision their ultimate destination."

Regarding opposition from labor groups, he stated, "We will engage in sufficient discussions," but added, "The introduction of robots and AI is not about eliminating jobs but about revitalizing the manufacturing sector." He continued, "If industries that are avoided become sectors requiring robot managers through the adoption of robots, this could turn into job opportunities that are more attractive to young people and women."

On the issue of the Coupang information leak, he said, "My responsibility is to ensure that this does not escalate into a trade dispute. The best approach is to continuously explain our government’s position and sincerity to the U.S. side." He added, "While the U.S. may see this as a minor information leak, we regard it as a very serious one, and this is a fundamental difference."

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