Crisis at Samsung heats up in South Korea and threatens to turn a bonus dispute into a global headache for the semiconductor market

Written by Viviane Alves

Published on 13/05/2026 at 23:50

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Failure in wage negotiations increases tension within Samsung Electronics and leads South Korean government to act to prevent strike scheduled for May 21

Samsung Electronics returned to the center of a labor crisis in South Korea after the failure of wage negotiations held on Wednesday, May 13.

The deadlock increased the risk of a strike involving more than 50,000 employees of the semiconductor giant, according to the company’s union.

The strike could begin on May 21 and last 18 days if the workers’ demands are not met.

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Dispute over bonuses increases tension within Samsung

Union representatives claim that workers are dissatisfied with the bonuses paid by Samsung.

According to the union, the amounts were below those offered by SK Hynix, a direct competitor in the global semiconductor market.

Union representative Choi Seung-ho stated that Samsung rejected changes to the current compensation system.

The main demand involves the elimination of the cap applied to bonuses paid to employees.

Choi also stated that the union does not intend to resume negotiations before the scheduled strike date.

The entity, however, may consider an “adequate proposal” if the company presents new conditions.

Samsung officially regretted the failure of the talks and informed that it will continue to maintain a “sincere dialogue” with union representatives.

The company is trying to avoid what it classified as “the worst possible scenario”.

South Korean government tries to prevent strike

Amid the escalation of the crisis, the South Korean government convened an emergency meeting with ministers related to the issue.

Prime Minister Kim Min-seok called for constant monitoring of the situation due to the potential impact on the national economy.

The government also requested support to maintain dialogue between the union and administration.

The intention is to prevent the wage dispute from escalating into a large-scale strike.

The National Labor Relations Commission, responsible for mediating the talks, stated that it presented alternatives during the meetings.

The body concluded the discussions due to the significant divergence between the parties’ positions and the union’s request to suspend negotiations.

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Chip Exports Amplify Economic Impact of the Crisis

The potential strike worries authorities and the market because semiconductors have gained strategic importance in the South Korean economy.

Government data indicates that chips accounted for 37% of the country’s exports in April.

In the previous year, this share was approximately 20%.

An interruption in Samsung’s production could benefit international competitors and increase pressure on the global technology market.

Delays in deliveries could also affect manufacturers in various sectors dependent on semiconductors.

The government, union, and company are trying to prevent the crisis from advancing into a prolonged strike.

The situation remains undefined as workers and administration maintain distant positions in the negotiations.

Amid this impasse, will Samsung be able to avoid a strike capable of impacting the global semiconductor supply chain and the South Korean economy itself?

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Crisis at Samsung heats up in South Korea and threatens to turn a bonus dispute into a global headache for the semiconductor market

Failure in wage negotiations increases tension within Samsung Electronics and leads South Korean government to act to prevent strike scheduled for May 21

Dispute over bonuses increases tension within Samsung

South Korean government tries to prevent strike

Chip Exports Amplify Economic Impact of the Crisis

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Crisis at Samsung heats up in South Korea and threatens to turn a bonus dispute into a global headache for the semiconductor market

Failure in wage negotiations increases tension within Samsung Electronics and leads South Korean government to act to prevent strike scheduled for May 21

Dispute over bonuses increases tension within Samsung

South Korean government tries to prevent strike

Chip Exports Amplify Economic Impact of the Crisis

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Workers were opening a new road connection near the Marginal Tietê when they found, in the underground of the construction site, remnants of locomotives, wagons, and boilers from the 19th century linked to the forgotten history of Lapa.

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China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

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