Samsung Electronics Board Chairman: "Both Labor and Management Stand to Lose"… Academia Warns of "10 Trillion Won Loss Amid AI Race"

As the general strike by the Samsung Electronics labor union scheduled for May 21 approaches, the Samsung Electronics board of directors and academia have expressed growing concerns over potential production disruptions and the broader impact on the national economy.

Shin Jeyoon, Chairman of the Board at Samsung Electronics.

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According to industry sources on May 6, Shin Jeyoon, Chairman of the Board at Samsung Electronics, stated on the company’s internal bulletin board on May 5 regarding the union’s planned general strike, “As chairman of the board, I feel a heavy sense of responsibility and apologize for causing concern.”

Chairman Shin especially voiced strong concerns about the realization of a general strike, saying, “Both labor and management could lose their footing.” He emphasized, “If the company’s value declines due to massive strike-related losses and customer attrition, it will cause serious losses to shareholders, investors, employees, and the local community. In addition, exports worth tens of billions of dollars and tax revenues amounting to tens of trillions of won could decrease, and the resulting rise in the exchange rate could shrink gross domestic product (GDP), severely impacting the national economy.”

He also warned that the damage could go beyond simple financial losses, potentially leading to a loss of international credibility and supply chain paralysis in the global market. Shin stated, “Timing and customer trust are essential in the semiconductor business. If disruptions in development and production or delays in delivery occur, we could lose our fundamental competitiveness and market leadership due to customer attrition to competitors.”

The academic community has also pointed out that internal conflict at a time of global competition for dominance in artificial intelligence (AI) semiconductors could become a fatal opportunity cost. Song Heonjae, professor of economics at the University of Seoul, said at the Anmin Policy Forum seminar last month, “If semiconductor plant operations are halted, losses can reach tens of billions of won per minute and up to 1 trillion won per day. If the strike is prolonged, operating profit in the semiconductor division could decrease by as much as 10 trillion won.” The union’s own estimates of potential production disruptions are also reported to reach between 20 trillion and 30 trillion won.

Kim Joungho, professor at Korea Advanced Institute of Science and Technology (KAIST), also pointed out, “In a situation where companies must maintain investment and employment amid global competition, excessive wage demands could become a long-term burden on the industry’s competitiveness.”

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