Chairman Lee Jae-yong Appeals, "The Storm Is My Fault, I Will Take It All... It Is Time to Move in One Direction"

\r\n\r\n[Financial News] Lee Jae-yong, chairman of Samsung Electronics, cut short his overseas schedule and rushed back home on the 16th, five days before a general strike was set to begin, and appealed to the union, saying, "I will do my best so that you can take pride in being part of Samsung." Samsung Electronics' labor union plans to launch an 18-day general strike starting on the 21st if its demand for performance-based bonuses is not accepted. The union estimates that about 50,000 workers could take part. As concerns grow over possible disruptions to semiconductor production, Lee is seen as having signaled his intention to actively help defuse the conflict and prevent the situation from escalating.
After returning through Gimpo International Airport in Gangseo District, Seoul, on the afternoon of the 16th, Lee delivered a statement in front of the business center and bowed repeatedly to customers and the public around the world.
Lee said, "I sincerely apologize to our customers and the public around the world for the anxiety and concern caused by internal company issues." He added, "It is time for the labor union and all Samsung members to move in one direction," stressing internal unity. He also said, "I will take the harsh wind and rain myself and put all the blame on me," adding, "I will do my utmost so that everyone can take pride in being part of Samsung."
\r\n\r\nThe remarks came as labor-management tensions at Samsung Electronics were heading toward an unprecedented rupture, reflecting the sense of urgency ahead of the planned strike.
Since December last year, the union has demanded that 15% of operating profit be explicitly designated as the bonus pool and that the cap on bonuses be abolished. The company, meanwhile, argues that introducing a rigid compensation system unrelated to business performance could reduce its ability to invest in the future.
The dispute remained unresolved even after mediation by the National Labor Relations Commission was suspended in March. Follow-up mediation talks, which resumed after government persuasion, recently collapsed as well, leaving negotiations with little momentum.
Five days before the general strike, executives from the Samsung Electronics Device Solutions Division visited the union in person and asked it to resume talks, but the union held to its position and maintained a hard-line stance.
The union says negotiations are impossible unless performance-based bonuses are institutionalized and the cap is removed. Choi Seung-ho, chairman of the union, reaffirmed the plan to go ahead with the strike, saying, "We have no trust in management. We can negotiate after the strike."
Accordingly, the union plans to launch an 18-day general strike from the 21st through the 7th of next month. It expects as many as 50,000 of its roughly 70,000 members to join.
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As the situation escalated, the government also stepped in to mediate. Kim Young-hoon, minister of employment and labor, met with Samsung Electronics executives on the day and held a meeting lasting about an hour, during which he reportedly conveyed the union's demands. Earlier, Kim had visited Samsung Electronics Pyeongtaek Campus, where he also met with the union and urged both sides to resume negotiations.
The union is currently demanding a change in its chief bargaining representative and a shift in the company's position as conditions for resuming talks. The company is standing firm, proposing to keep the current bonus system while supplementing it with special rewards, leaving the two sides still far apart.
Meanwhile, industry watchers say that if the general strike becomes a reality, disruptions to semiconductor production and supply chain turmoil will be unavoidable. Some estimates suggest that direct and indirect losses from production stoppages and supply chain impacts could reach as much as 100 trillion won.
moving@fnnews.com Lee Dong-hyuk Reporter