Samsung and Union Fail to Reach Deal After Mediation; 18-Day Strike Planned May 21

Samsung Electronics Co. and its largest labor union failed to reach a wage-and-bonus deal in government-led post-mediation talks that broke down Wednesday in Sejong, putting the company on a near-term collision course with workers who plan to begin an 18-day strike on May 21.

The collapse of the last-ditch talks sharply raises the risk of disruption at the world’s largest memory-chip maker. A broad walkout at Samsung would matter well beyond one company, given the central role semiconductors play in South Korea’s export economy and in global electronics supply chains.

Yonhap reported that the negotiations ended May 13 at the National Labor Relations Commission, a state body that handles labor disputes, after marathon discussions stretching over several days. The breakdown was announced by Choi Seung-ho, head of Samsung Electronics’ largest union, who said the union had waited nearly 12 hours during the process.

At the center of the dispute is Samsung’s performance-based bonus system, which is tied to operating profit. The union is demanding bonuses equal to 15% of operating profit, the removal of the payout cap and formal institutionalization of the bonus system. Samsung management offered to allocate 10% of operating profit to bonuses and proposed a one-time special compensation package that it said exceeds industry standards.

The union has already announced plans for a general strike from May 21 through June 7 if its demands are not met, according to Reuters and other outlets. Choi said about 41,000 unionized workers had indicated they would participate, and that the number could rise above 50,000.

That timetable now leaves little room for a settlement. Samsung has asked a court for an injunction to restrict the planned strike, and Yonhap reported that the district court is expected to rule by May 20, one day before the walkout is scheduled to start.

“Because the differences between the labor union and management did not narrow, we requested mediation and waited for nearly 12 hours, but the proposal only worsened,” Choi said, according to Yonhap. He also said the union did not plan to stage an illegal strike and would proceed lawfully.

Samsung said the government-arranged effort fell apart after the union ended the talks. “The post-mediation process, which the government worked hard to arrange, unfortunately collapsed after the union declared negotiations broken down,” the company said, adding that it would “continue making sincere efforts until the very end to prevent the worst-case outcome from materializing.”

The stakes are high because Samsung is one of the most important manufacturers in the semiconductor industry, particularly in memory chips used across servers, smartphones and other electronics. Yonhap said observers estimate a full-scale strike could cause more than 40 trillion won, or roughly tens of billions of dollars, in damage to the South Korean economy. That figure is an observer estimate cited by Yonhap, not an official government forecast.

The labor dispute is unfolding as semiconductors help drive South Korea’s trade performance. Yonhap, citing trade ministry data released May 6, reported that the country’s exports reached a record $219.9 billion in the first quarter of 2026, with semiconductor exports jumping about 139% from a year earlier to $78.5 billion.

South Korean law does provide one additional backstop: the labor minister can order emergency arbitration if industrial action is deemed likely to seriously harm the national economy or public welfare. No such order has been reported in the Samsung case.