Confederation of Samsung Electronics Workers Holds Mobilization Rally: If Company Does Not Accept Demands for 15% of Operating Profit as Performance Bonus and Removal of Performance Cap, Total Strike Will Begin on May 21 for 18 Days
Korean Media: [Editorial] Huge Chip Bonuses Must Not Be "Killing the Hen to Get the Eggs"
On the 23rd, the Samsung Electronics Workers' Union held a mobilization rally, declaring that if the company does not accept demands such as distributing 15% of operating profit as performance bonuses and eliminating performance caps, a total strike lasting 18 days will begin on May 21. Thanks to the super cycle in the semiconductor industry, Samsung Electronics is expected to achieve an operating profit of 30 trillion KRW (approximately RMB 1.38 trillion) this year—nearly seven times higher than last year. The union is demanding that 4.5 trillion KRW (approximately RMB 207.4 billion) be allocated as performance bonuses, which amounts to twice the total annual employee salaries of Samsung Electronics in 2025 (19.8 trillion KRW, approximately RMB 91.2 billion). If these demands are met, employees in the memory business division could receive performance bonuses as high as 700 million KRW (approximately RMB 3.22 million)—more than four times the average annual salary of Samsung Electronics employees (158 million KRW, approximately RMB 7.3 million). SK Hynix faces a similar situation.
It is entirely reasonable for companies to improve performance and share gains with employees. However, excess is as harmful as deficiency. In the semiconductor industry, technological prowess and capital investment—not labor input—are key determinants of success. In an industry centered on ultra-fine processes and cutting-edge equipment, there is an urgent need for rigorous discussion on how to assess labor contributions and design appropriate reward mechanisms.
Over recent years, despite a downturn in the semiconductor market, Samsung Electronics has persisted with large-scale investments. Over the past five years, research and development (R&D) spending reached 14.8 trillion KRW (approximately RMB 682.1 billion), and facility investments amounted to 23 trillion KRW (approximately RMB 1 trillion)—all forward-looking investments aimed at future market recovery. The results of these investments, combined with the widespread adoption of artificial intelligence (AI), have driven improved financial performance. Going forward, massive investments and acquisitions of overseas specialized firms remain essential—issues far more critical than employee bonuses, directly affecting the survival of the enterprise.
Korean semiconductor companies are now locked in life-or-death competition with global giants such as Micron, NVIDIA, and TSMC, as well as rapidly advancing Chinese enterprises. A single misstep or delay in investment could plunge a company into irreversible decline. Labor and management must find a rational solution through negotiation, uniting to safeguard the sustained growth of this strategic national industry. Do not sacrifice long-term sustainability for short-term gains—avoid making irrevocable mistakes.
Source: Chosun Ilbo
Original Article: toutiao.com/article/1863323678091276/
Disclaimer: This article represents the personal views of the author