Samsung Electronics Union Standoff: Will President Lee’s Warning Prevent Total Strike?

After the Central Labor Relations Commission’s second round of post-mediation between Samsung Electronics and its union broke down on May 20, increasing the likelihood of a full-scale strike, President Lee Jae-myung issued a warning to labor and urged both sides to keep negotiating until the last moment.

In opening remarks at a Cabinet meeting and emergency economic briefing he chaired at the Blue House that afternoon, Lee said the three labor rights—the right to organize, the right to collective bargaining, and the right to collective action—exist to protect socially vulnerable workers, not to give a group the power to impose outcomes for the benefit of a few. He said it is acceptable for unions to use those rights to press for their interests, but there are appropriate limits.

Lee emphasized that he respects workers’ right to collective action, but he made clear that demands that would unduly burden corporate investment or the national economy are unacceptable.

\”Investors accept risks and losses, so it is natural they share in profits,\” he said. \”Distributions from operating profit belong to investors and shareholders. No one can institutionally claim a set portion of operating profit before taxes are deducted.\”

He added that investors receive dividends from net income after taxes are withheld and said he finds the contrary argument difficult to understand. His remarks appeared aimed at criticizing the Samsung union’s demand to remove the current cap on performance bonuses—roughly 50% of base pay—and to allocate 15% of operating profit as performance pay.

Lee said the government ultimately bears final responsibility for such adjustments and that, when a line is crossed, the state must fulfill its duties for the sake of society and the community. \”That, in my view, is a central role of government,\” he said. Observers interpreted the comment as signaling the possible invocation of emergency arbitration powers if a strike ensues after failed negotiations.

On May 18, Lee had already suggested the possibility of emergency arbitration, saying that while all citizens’ fundamental rights are protected, those rights can be limited for public welfare so long as their essential substance is not violated.

Blue House senior spokesperson Kang Yoo-jung also issued a statement expressing deep regret over the Central Labor Relations Commission’s failed post-mediation and urged both sides to continue striving for an agreement, citing concerns about the potential impact on the Korean economy even before the final deadline.

Samsung and its union resumed talks at 4:25 p.m. that day at the Gyeonggi Employment and Labor Office in Suwon, with Labor Minister Kim Young-hoon presiding over the session.

Kim said he would present multiple alternatives on the major issues and urge both sides to make concessions and reach a compromise.

From May 18 through May 20, the parties participated in a second post-mediation session run by the Central Labor Relations Commission, but they failed to bridge differences on key points, including how to allocate performance bonuses across business units.

The commission proposed a compromise that the union accepted, but the company did not commit and remained noncommittal, leading the commission to declare the mediation unsuccessful.

Lee also criticized both Starbucks Korea over its recent \”Tank Day\” controversy and Musinsa for an advertising line that evoked the torture of Park Jong-cheol, denouncing both incidents together.

For a social community to function properly, people must observe appropriate limits, Lee said. Above all, common sense matters. There are lines that must not be crossed, and there are norms of professional decency.

He cited recent episodes involving Gwangju’s May 18 and remarks that demean victims, saying comments like \”How can anyone behave that way while claiming to be human?\” are occurring far too frequently. He stressed these are not isolated private remarks but actions carried out publicly and systematically by responsible individuals in organized settings.

\”How can we still call that a human society?\” he asked. Even if such conduct does not fall under criminal penalties or physical sanctions, it is not acceptable. People must uphold basic ethical standards, he said.

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