The chairman of Samsung Electronics has called on unionised workers to resolve ongoing pay disputes with management, cautioning that a planned strike could have far-reaching consequences for both the company and the broader South Korean economy.
In an internal memo issued Tuesday, chairman Shin Je-yoon voiced concern over the firm’s global position, warning that industrial action could weaken competitiveness at a critical time for the semiconductor industry.
He said he was “worried about losing market leadership amid fleeing customers and falling competitiveness” if production and deliveries are disrupted by strike activity.
Shin further cautioned that prolonged disruption at South Korea’s largest company by revenue could ripple through the national economy, potentially driving capital outflows, reducing tax revenue, and weakening the Korean won.
“Such disruption at the chipmaker… could trigger capital outflows, a drop in national tax revenue, and a weakening of the won currency,” he warned.
The chairman urged both sides to prioritise dialogue, stressing that a negotiated settlement is essential to avoid escalation.
“It’s time to resolve the problem through sincere dialogue,” Shin said.
The warning comes as unions at Samsung Electronics threaten industrial action over bonus demands, with a proposed strike lasting up to 18 days beginning May 21.
The dispute adds to growing labour tensions across the global tech supply chain, where semiconductor stability remains highly sensitive amid shifting demand and geopolitical uncertainty.
