Samsung Averts Strike: Agreement Reached with Semiconductor Division, All Other Sectors Revolt: 'Too Much Pay Disparity'

Samsung has reached an agreement with the major internal unions that will allow employees in the semiconductor division to receive extremely high annual bonuses, directly tied to the company's economic performance. The deal, approved by 73.7% of the 62,616 workers involved in the voting, has averted an 18-day strike that could have severely impacted not only the South Korean giant but also the national economy.

According to information that emerged after the vote, Samsung could register operating profits of up to 300 trillion won this year, a figure that would allow for extraordinary payments of up to 600 million won, equivalent to about 343,000 euros, to the approximately 28,000 employees of the chip division. Bloomberg estimates that the company could allocate a total of about 40 trillion won to the bonuses.

The bonuses will mainly concern the memory chip sector dedicated to artificial intelligence, currently the company's most profitable sector. On average, according to various estimates, the affected workers will receive total bonuses close to $340,000.

The agreement will be valid for a decade and establishes a very precise structure. Samsung will distribute part of the compensation in the form of company shares over at least ten years. Payments will remain tied to achieving specific economic targets: the memory division must generate at least 200 trillion won in annual profit between 2026 and 2028 and at least 100 trillion won in the period between 2029 and 2035.

To satisfy union demands, Samsung will also eliminate maximum limits on bonuses and will allocate 10.5% of annual operating profits to employee bonuses. The semiconductor division will receive 40% of the entire bonus fund.

The situation appears very different for other business sectors. Employees in the smartphone, TV, and appliance divisions may receive bonuses of about 6 million won, equivalent to approximately $4,000, a significantly lower amount compared to their colleagues in the chip sector.

This strong pay disparity has fueled new internal tensions within the group. A minor union, representing primarily workers not involved in semiconductor production, had attempted to halt the voting through legal action, arguing that the agreement excessively favored the chip sector. According to reports from Yonhap, this same union is preparing a new lawsuit to seek the annulment of the vote.

The agreement was reached just an hour before the start of the strike, thanks to the intervention of South Korean Labor Minister Kim Young-hoon, who acted as a mediator between the parties. The South Korean government was observing the situation with great concern: Samsung represents about 12.5% of the national GDP and a quarter of the country's exports. According to estimates by Prime Minister Kim Min-seok, a prolonged strike could have caused direct losses of about 1 trillion won.