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Samsung Faces Strike Threat: How the AI Era is Changing Labor

Daniel Kim Views  

[iNews24 reporter Hwang Se-woong] Employment and Labor Minister Kim Young-hoon said Thursday that invoking the emergency mediation authority during labor talks at Samsung Electronics was a difficult option to consider.

He also said Samsung could announce measures to support suppliers and local communities if the tentative agreement wins union approval and becomes final.

Kim appeared on MBC Radio’s Kim Jong-bae’s Focus on the 22nd, saying that dialogue is the only solution and that the episode demonstrated the resilience of “K-democracy.”

Employment and Labor Minister Kim Young-hoon explains how the tentative agreement between Samsung and its union came about just before a potential total strike during his appearance on MBC Radio’s Kim Jong-bae’s Focus on the 22nd. [Photo=MBC Radio capture]

On the possibility of invoking the emergency mediation authority, he said he had regarded a Samsung strike as “unthinkable,” though he acknowledged a strike was not impossible. From his perspective, using emergency mediation was something he could not imagine doing.

The emergency mediation authority, under Article 76 of the Trade Union Act, allows the minister to intervene when industrial action would seriously damage the national economy or threaten citizens’ daily lives. When invoked, industrial action is suspended for 30 days.

As the prospect of a full strike grew, voices inside and outside government urged the measure’s use. Prime Minister Kim Min-seok and Trade, Industry and Energy Minister Kim Jung-kwan warned of economic fallout, and President Lee Jae-myung noted the possibility of limiting basic rights. Still, Minister Kim — who holds the authority to invoke the measure — has emphasized resolving the dispute through labor-management dialogue.

Kim also highlighted the different roles of the Industry and Labor ministries. “The industry minister has his duties, and I have mine,” he said, suggesting the industry minister feared a Samsung strike could extinguish fragile growth momentum.

On the president’s comment about limiting public welfare, Kim said the issue should not be judged solely by whether it infringes on corporate profits.

“We must ask whether deepening polarization advances or undermines national economic development,” he said. “We also need to raise unionization rates and move toward a society that respects labor.”

Kim said the Samsung dispute exposed questions about how to divide gains from productivity increases in the AI era. It opened the door to debates over how society should redistribute the rapid productivity gains and profits generated by AI.

“My proposals include shared growth with suppliers, contributions to local communities, and addressing industrial safety issues represented by Banolim,” he said. “I asked Samsung to explicitly acknowledge that suppliers and others made sacrifices while the company earned large profits.”

He also suggested Samsung might announce coexistence measures. “I understand the company is considering them,” he said. “If the union vote passes and they reach a final agreement, I would expect the company to announce such measures.”

Responding to a shareholder group’s warning of legal action over the tentative deal, he said, “Stock prices have risen significantly. We must live and work together. Only a sustainable Samsung can guarantee shareholders’ returns.”

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