▲ Prime Minister Kim Min-seok (2nd from L) delivers an address on the labor dispute at Samsung Electronics Co. in Seoul on May 17, 2026. (Yonhap)
▲ Samsung Electronics Chairman Lee Jae-yong (C) apologizes to the public for causing concern over the company's "internal" issues at Gimpo International Airport in western Seoul on May 16, 2026. (Yonhap)

(2nd LD) PM-Samsung labor dispute

(2nd LD) PM issues warning over planned Samsung Electronics strike, vows all measures including emergency arbitration

(ATTN: ADDS more comments, background info in paras 3-4, 8-10; TRIMS)

SEOUL, May 17 (Yonhap) -- Prime Minister Kim Min-seok on Sunday welcomed the planned resumption of dialogue between Samsung Electronics and its labor union amid a looming strike, while warning that the government will consider every possible measure, including emergency arbitration, to minimize potential damage to the national economy.

Kim made the remarks in a public statement addressed to the nation, as labor and management have decided to resume government-led mediation talks Monday, just four days ahead of a planned walkout.

The two sides have remained widely divided over performance-based bonuses tied to the company's earnings from the artificial intelligence (AI)-related semiconductor business, and the company's largest labor union plans to begin the 18-day strike starting Thursday.

"The government sincerely welcomes the decision to resume dialogue," Kim said. "Monday's negotiations are effectively the last opportunity to prevent a strike. Both labor and management must never take the gravity of this meeting lightly."

Noting that a possible strike could cause serious damage to the national economy, Kim said the government "will have no choice but to consider all possible response measures, including emergency arbitration, in order to protect the economy."

Under South Korean labor law, the labor ministry can invoke an emergency adjustment measure that suspends strike action for up to 30 days if the strike is deemed likely to seriously harm the national economy or disrupt the daily lives of citizens.

Kim warned that a strike would not only affect Samsung Electronics itself, but also trigger broader consequences, including a decline in exports, instability in financial markets, and contractions in investment and employment among numerous partner companies, with the resulting economic damage reaching up to 100 trillion won (US$66.98 billion).

"The government held the second emergency meeting of related ministers earlier today, where we closely reviewed the potential impact of the planned strike as a whole and discussed all possible response measures," Kim said. "The government will actively support dialogue to ensure that the situation does not lead to a strike under any circumstances."

Since the emergency arbitration system was introduced in 1963, the government has invoked the authority four times. If the measure is officially invoked this time, it would mark the first such case in 21 years.

The most recent invocation took place in December 2005 during a strike by Korean Air Co. as the government sought to prevent major disruptions to transportation services and public inconvenience.

The union has demanded fixed performance bonuses equivalent to 15 percent of the operating profit generated by the company's semiconductor division, along with the removal of the payout cap.

The company proposed keeping the current bonus system while making it more flexible by changing how bonuses are calculated and introducing a special compensation program.

Samsung Electronics Chairman Lee Jae-yong issued a public apology on Saturday for causing concern over the company's "internal" issues, while calling for unity within his company.

Meanwhile, the Federation of Korean Trade Unions (FKTU) said criticism of the union must stop, arguing that the dispute over bonuses should not be dismissed simply as "excessive demands," but rather viewed as a legitimate question about how profits generated by the company should be distributed.

The group also criticized recent discussions about invoking emergency arbitration rights, calling them "highly inappropriate."

"It is dangerous to attempt to apply emergency arbitration simply because of the large economic impact, as this could effectively set a precedent for restricting the right of workers at major corporations to strike," the FKTU said.

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