Samsung Recovers $66 Billion as Seoul Moves to Avert 18-Day Strike
Updated
Updated · CNBC · May 13
Samsung Recovers $66 Billion as Seoul Moves to Avert 18-Day Strike
1 articles · Updated · CNBC · May 13
Samsung shares erased an intraday 6.09% slide—equal to 99.07 trillion won ($66.18 billion) in market value—and turned positive after South Korean officials stepped in over strike fears.
The selloff followed failed wage talks with Samsung's union, which has threatened an 18-day walkout from May 21 involving more than 41,000 workers unless bonus demands are met.
The union wants 15% of operating profit allocated to performance bonuses, no payout caps and a formalized scheme; management has offered 10% plus a one-time special compensation package.
Finance Minister Koo Yun Cheol said strikes 'must never happen,' and Prime Minister Kim Min Seok ordered close management and active assistance, underscoring concern over Samsung's economic importance.
The labor dispute lands as Samsung's chip-led recovery accelerates: the company reported first-quarter operating profit of 57.2 trillion won, up 750% from a year earlier.
Could Samsung's labor crisis hand the 2-nanometer chip crown to its rival TSMC?
Is Samsung's strike the first battle in a new war over how AI-driven profits are shared?
Samsung Faces $20 Billion Strike Threat: Labor Dispute Puts Global Chip Supply and Profit at Risk Ahead of May 21 Deadline
Overview
As Samsung Electronics and its labor union resume negotiations ahead of the May 21 strike deadline, tensions are rising over demands for a larger share of company profits and the removal of bonus caps. The union seeks long-term changes to compensation, aiming for 15% of operating profit to be allocated to bonuses and for these policies to last beyond this year. This dispute has drawn strong attention from external groups, with warnings that a strike could disrupt global memory supply chains, cause price volatility, and allow competitors to gain market share if Samsung's production is interrupted.