Samsung’s Chairman cautions that the anticipated strike may hinder production and deter potential investors

Shin Je-yoon, chairman of Samsung Electronics, has cautioned that a proposed workers’ strike may hinder production and adversely affect South Korea’s economy.

The chairman of the board at Samsung Electronics has called on unionised workers to settle their ongoing pay disputes with management, cautioning that a potential strike could harm investors, employees, and lead to “serious consequences” for the South Korean economy.

In an internal memo sent to employees on Tuesday, Shin Je-yoon conveyed his concerns regarding the company’s global competitiveness. He expressed that he was “worried about losing market leadership amid fleeing customers and falling competitiveness” if industrial action disrupts production and deliveries.

Shin cautioned that any extended disruption at the semiconductor giant, which is South Korea’s largest company by revenue, could lead to broader economic consequences, such as capital outflows, decreased national tax revenue, and strain on the won currency.

“Such disruption at the chipmaker could lead to capital outflows, a decline in national tax revenue, and a weakening of the won currency,” he stated.

The chairman emphasized the importance of restraint and dialogue, highlighting the necessity for a negotiated settlement to prevent escalation.

“We must address the issue through genuine conversation,” Shin stated.

Unions at Samsung Electronics have issued a warning as they threaten industrial action in their quest for higher bonuses, planning to strike for as long as 18 days starting May 21.

The dispute adds to growing labor tensions within the global technology supply chain at a time when demand for semiconductors is highly sensitive to production stability and geopolitical uncertainty.