The board chairman of Samsung Electronics has urged unionised workers to resolve ongoing pay disputes with management, warning that a planned strike could damage investors, employees, and have “serious consequences” for the South Korean economy.
In an internal memo sent to employees on Tuesday, Shin Je-yoon expressed concern over the company’s global competitiveness, saying he was “worried about losing market leadership amid fleeing customers and falling competitiveness” if industrial action disrupts production and deliveries.
Shin warned that any prolonged disruption at the semiconductor giant, South Korea’s largest company by revenue, could have wider economic implications, including capital outflows, reduced national tax revenue, and pressure on the won currency.
“Such disruption at the chipmaker… could trigger capital outflows, a drop in national tax revenue, and a weakening of the won currency,” he said.
Calling for restraint and dialogue, the chairman stressed the need for a negotiated settlement to avoid escalation.
“It’s time to resolve the problem through sincere dialogue,” Shin said.
The warning comes as unions at Samsung Electronics threaten industrial action in pursuit of higher bonuses, with plans to strike for up to 18 days beginning May 21.
The dispute adds to growing labour tensions within the global technology supply chain, at a time when demand for semiconductors remains highly sensitive to production stability and geopolitical uncertainty.
Boluwatife Enome
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