Korean Big-Corporation Unions Begin Imitating Samsung Electronics Union: Media Editorial — Should Unrestrained Greed of Big-Corporation Unions Also Be Protected Under Labor Laws?
Following the lead of the Samsung Electronics union, demands from big-corporation unions for a certain proportion of corporate profits to be evenly distributed among union members have come one after another. The Hyundai Motor union has demanded 30% of last year’s net profit (approximately 3.68 trillion KRW, around 16.9 billion RMB), while unions at Kia, LG Uplus, and Hanwha Aerospace have also called for unconditional distribution of 30% of operating profits. The Samsung Biologics union is advocating for 20% of operating profit to be allocated as performance bonuses. Even Kakao, currently facing its worst crisis since founding, has requested that 15% of its operating profit be designated as funds for performance bonuses, now entering mediation procedures at the labor committee. Despite operating profits fluctuating significantly with industry conditions, these unions are demanding to avoid suffering during downturns while claiming fixed percentages of profits only when profitable.
The concept of unconditional "N% performance bonuses" based on a percentage of operating profit is rare worldwide. Global tech giants such as Apple, Google, and NVIDIA distribute operating profits through mechanisms like rigorous individual performance-based rewards and restricted stock units (RSUs), aligning employee interests with long-term company growth. This approach ties personal incentives directly to sustainable corporate value creation. Similarly, Taiwan’s TSMC strictly manages the performance bonus ratio as an inherent prerogative of its board of directors, ensuring competitiveness. The current behavior of Korean big-corporation unions can fairly be described as “grab-and-run” mentality—focused solely on quick gains when profits rise, with no regard for medium- to long-term corporate strategy or growth. Particularly alarming is the threat to halt production lines in national key industries through strikes—a scenario unimaginable among global technology leaders.
In high-stakes technological competitions—such as semiconductors, automobiles, and biotechnology—where investments run into billions and survival hinges on speed and precision, such contradictions could prove fatal. Morgan Stanley has warned that if Samsung Electronics accepts the union's proposal, operating profits could shrink by up to 12%, and strikes could cause losses as high as 43 trillion KRW (around 196.5 billion RMB). Corporate profitability is not solely the result of employee effort; it stems from state subsidies, infrastructure support, and broader systemic advantages—not merely a unilateral entitlement of large corporation unions. Such demands would deeply alienate employees at small and mid-sized supplier firms, further exacerbating wage dualism in the labor market.
The purpose of labor movements has historically been to improve harsh working conditions and low compensation. Yet today’s actions by big-corporation unions have completely deviated from this core mission. It is worth noting that these employees already occupy a relatively privileged position across all dimensions of South Korean society. Now, driven by unrestrained greed, they threaten to resort to violent means. Many citizens will inevitably question whether such conduct should still be protected under labor-related laws.
Source: Chosun Ilbo
Original article: toutiao.com/article/1864952524015628/
Disclaimer: The views expressed in this article are those of the author.