South Korea Industry Minister Says Emergency Labor Action Inevitable if Samsung Strike Begins
Summary
- Industry Minister Kim Jung-kwan said invoking emergency mediation powers would be unavoidable if Samsung Electronics’ union proceeds with its planned general strike.
- Kim said Samsung Electronics’ semiconductor business is a core strategic asset for South Korea and that a strike would cause irreversible economic damage.
- Kim said Samsung Electronics’ earnings and share price directly affect people’s lives, and called on labor and management to seek a reasonable distribution that does not harm the company’s future and sustainability.
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South Korea’s Industry Minister Kim Jung-kwan said on May 14 that emergency labor mediation would be unavoidable if Samsung Electronics’ union goes ahead with its planned general strike on May 21.
In a post on X, Kim described Samsung Electronics’ semiconductor business as “South Korea’s unrivaled growth engine and virtually its only core strategic asset.” A strike, he wrote, would inflict economic damage that could not be reversed. “Under no circumstances should a strike be allowed to happen,” he said, adding that emergency mediation would be inevitable if a walkout begins.
Emergency mediation can be ordered by the labor minister when industrial action is deemed likely to seriously harm the national economy. Once invoked, the union must immediately halt all strike action for 30 days.
Kim also urged both sides to resume talks quickly. Samsung Electronics’ earnings and share price directly affect the lives of South Koreans through about 4.6 million shareholders, including the National Pension Service and other pension funds, he said. He called on management to offer appropriate compensation and on the union to seek a reasonable distribution that does not undermine the company’s future and sustainability.
Amid the government’s hardening stance, Samsung Electronics entered an emergency warm-down mode on May 14 to prevent production disruptions from a strike. The company began limiting the number of new wafers introduced at the front end of production lines to gradually lower utilization rates and cushion the shock of any sudden stoppage. The union has said it will hold an 18-day general strike starting May 21.
Because of the nature of semiconductor manufacturing, any shutdown would require substantial time and money to restart. Beyond a simple drop in output, quality problems stemming from a shortage of skilled workers could deliver a severe blow to global supply chains. In a worst-case scenario, industry estimates put losses from a full halt in manufacturing processes at about 100 trillion won ($72.5 billion).
Kim Chae-yeon and Park Jong-gwan, Hankyung reporters why29@hankyung.com
Korea Economic Daily
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