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Samsung Electronics Faces Legal Battle Over Massive Bonus Disparities

Daniel Kim Views  

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[Photo: Yonhap News]

Internal conflict over Samsung Electronics’ tentative 2026 wage agreement could spill into the courts. Following disputes over bonus disparities between the semiconductor (DS) and non‑semiconductor (DX) divisions, fights over union voting rights and representation have added fresh complications, turning the approval process into a last‑minute battleground.

On May 25, the Donghaeng union at Samsung Electronics said it will file an injunction at the Suwon District Court at 9 a.m. on May 26 to halt the ratification vote procedure. Donghaeng is one of Samsung’s three main unions and represents DX division employees who work on smartphones, TVs and home appliances.

Samsung is currently conducting a membership vote on the tentative 2026 wage settlement reached by management and labor. Voting is scheduled to continue through 10 a.m. on May 27.

Donghaeng alleges that the Samsung branch of the Samsung Group Overarching Union, the company’s largest union, excluded them from the voting process out of concern that DX employees would consolidate their votes. Donghaeng had joined a joint bargaining committee with the Overarching Union and the National Samsung Electronics Union but later withdrew, saying DX perspectives were not being properly reflected.

The Overarching Union, for its part, says that because Donghaeng left the joint committee, it no longer has voting rights. Donghaeng maintains the procedure is flawed and plans to ask the court to rule on the matter.

At the heart of the dispute are division‑by‑division compensation differences. If the tentative agreement passes, DS employees could receive performance bonuses worth several hundred million KRW (approximately $150,000–$675,000) on top of a baseline annual salary of 100 million KRW (approximately $75,000), while DX employees may receive relatively limited stock‑based compensation.

Some non‑memory employees, including those in the DX division, oppose the agreement and are pushing to reject it. Regardless of the vote outcome, tensions over the bonus formula and union representation are likely to persist inside Samsung for the foreseeable future.

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Daniel Kim
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