5/7/2026
Individual Shareholders Step Up Criticism of Samsung Labor Unions
Korea Times (05/07/26) Hyun-woo, Nam
Individual shareholders of Samsung Electronics (KRX: 005930) are raising their voices against a planned strike by the company's labor unions, warning of legal action if the walkout violates the law and causes damage. A Samsung Electronics individual shareholder group, whose name roughly translates in English to the “Republic of Korea Shareholder Activism Headquarters,” said Thursday that it will take “stern shareholder actions” against the unions, while urging lawmakers to increase efforts to protect shareholders’ rights. “If an illegal strike takes place or management reaches an unfair agreement with the unions, we will take comprehensive shareholder actions,” Min Kyung-kwon, head of the group, said during a press conference at the National Assembly in Seoul. “If excessive strike actions by the unions damage the company’s core assets, shareholders will coordinate through online platforms and respond firmly.” The warnings came in response to the unions' plan to launch a massive strike May 21 demanding the company remove a cap on performance-based bonuses and allocate bonuses equal to 15% of annual operating profit. If their demands are met, the company could pay around 45 trillion won ($31 billion) in bonuses this year alone. Through multiple rallies since last month, the shareholders' group has argued that the union's strike threat and bonus demands will undermine the competitiveness of not only Samsung Electronics but also the Korean economy as a whole. The group said if any illegal activities during the strike damage the company’s assets and harm shareholder value, shareholders will jointly seek damages from all union members for infringing on their third-party rights. The group also said it would file shareholder derivative suits against management if the company reaches what it described as “unfair agreements” with the unions in an attempt to avoid conflict, arguing that such moves would seriously infringe on shareholders’ dividend rights. “Samsung Electronics’ massive semiconductor achievements do not belong solely to management, labor unions or shareholders,” Min said. “They are the collective result of Korea as a whole, built on enormous support from the national power grid and government policies, as well as the hard work and dedication of partner companies.” He added: “Under market economy principles, there should be a way for a single company’s achievements not to be monopolized selfishly, but to circulate in a virtuous cycle through partner companies, national infrastructure and shareholder returns." Min urged individual shareholders to join forces through ACT, a shareholder activism platform in Korea. ACT has been conducting a survey since May 4 on whether shareholders should take actions such as seeking damages against the unions. As of Thursday morning, Samsung shareholders representing 100,983 shares out of 103,547 agreed. ACT said that it could urge Samsung Electronics’ board and labor unions to establish a reasonable performance sharing scheme in line with global standards, as well as seek legal measures, such as shareholder derivative lawsuits against the board and claims for damages over third-party rights violations. Another shareholder group identifying itself as Samsung Electronics Shareholder Activism Headquarters has also been raising its voice against the unions by hanging banners in Seoul’s Hannam-dong area, where Samsung Electronics Executive Chairman Lee Jae-yong’s home is located. On the banners, the group claims that “the unions’ strike will result in windfall gains for foreign semiconductor rivals," urging the unions to “face public anger at a time when the national economy is at its worst.” In November last year, three of Samsung Electronics’ five labor unions formed a coalition for joint wage and collective bargaining negotiations, demanding the removal of the cap on performance-based bonuses and allocations equal to 15% of annual operating profit. However, earlier this week, one of the three, Samsung Electronics Co. Union, withdrew from the joint action, arguing that the coalition’s demands were largely focused on the company’s chipmaking division. The unions’ demands and strike threat are apparently failing to gain broad support from the public, civic groups and even the liberal Lee Jae Myung administration, amid criticism that the 15% demand is excessive and concerns over the potential damage a strike could inflict on the company and the broader economy.
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