Samsung Electronics suppliers fear wage delays amid union's spending fight

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[Financial News] With Samsung Electronics' union launching a general strike on the 18th, small and midsize companies that work with the company in semiconductor production are expected to take a direct hit.
According to a report by Maeil Broadcasting Network (MBN) on the 14th, the number of companies linked to Samsung Electronics stood at around 2,500 as of 2024. The figure includes suppliers of materials, parts and equipment needed for semiconductor production, as well as staffing firms.
The problem is that if the production process is stopped by the union strike, these small and midsize companies will be hit hard.
A representative from a parts supplier, identified as A, said, "If sales do not come in for about two months, the damage would be enormous."
That is because although the union has announced an 18-day strike, it would take much longer to restart the production lines normally. During that period, partner companies would have to worry about survival.
A said, "While they are fighting over a spending spree, workers at small and midsize companies even have to worry about whether their wages will be paid properly."
Samsung Electronics said it must prevent any shutdown of its factories at all costs. It has entered an emergency management mode and is reviewing various scenarios.
If the strike becomes a reality, losses worth trillions of won are expected in just one day.
gaa1003@fnnews.com Ahn Ga-eul Reporter