Samsung Electronics' union has approved a general strike with 93.1 percent support, demanding bonus reforms and a 7 percent pay raise. This would be the company's second strike since 1969, coinciding with a prosecution probe into insider trading that could pressure shares.
Samsung Electronics' joint union secured formal strike authorization on Wednesday after 93.1 percent of 66,000 voters approved it in a ballot starting March 9, with over 73 percent of 90,000 members participating. The union plans a press conference on Monday near Chairman Lee Jae-yong's residence in Seoul, followed by a rally in Pyeongtaek on April 23 and a full-scale strike from May 21 to June 7. Demands include removing bonus caps, a 7 percent pay raise, and clearer criteria for performance-based bonuses. The union stated that 2026 wage talks ended without agreement as management rejected reasonable requests. This would be the second strike since the company's 1969 founding, following the first in July 2024 led by the National Samsung Electronics Union. Separately, prosecutors are probing alleged insider trading tied to Samsung's acquisition of Rainbow Robotics, referred by the Financial Services Commission last month involving 16 individuals including the firm's CEO and former finance chief. Suspects are accused of 3-4 billion won ($2 million) in illegal profits from trades between 2022 and 2024 using non-public information; searches targeted the firm's headquarters, residences, and Samsung's Suwon operations. Analyst Lee Ju-wan, formerly at POSCO Research Institute, said: “Samsung’s semiconductor plant utilization rate is currently only around 70 percent... a union strike is unlikely to pose a major problem. However, with inventories currently at low levels, any real disruption to production could immediately lead to sales losses.” Analysts expect limited immediate impact on output but warn prolonged action amid low inventories could affect shares alongside governance concerns.
