"The Moment It Stops, Trust Ends": Samsung Biologics Labor Dispute Puts K-Bio Competitiveness to the Test

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[Financial News] As the labor dispute surrounding Samsung Biologics drags on, concerns are growing that the competitiveness of South Korea's broader bio industry could weaken. The issue goes beyond a simple wage negotiation, as it could shake global order trust and even the competitiveness of a strategic national industry, making a swift resolution urgent.
According to the pharmaceutical and biotech industry on the 17th, experts expect that if the Samsung Biologics union launches another full strike, the impact will be more severe than in ordinary manufacturing.
Kang Seung-hoon, a professor in the Department of Bio-Pharmaceutical Engineering at Inha University, said, "Because biopharmaceutical production involves cell culture processes, 24-hour real-time monitoring is essential." He added, "If a strike halts production, regulators may view it as an unauthorized suspension of the process, which could lead to the disposal of all products currently being manufactured."
The Samsung Biologics union staged a partial strike on the 28th of last month and then carried out a full strike involving about 2,800 workers from the 1st to the 5th of this month. The losses from the action are estimated at about 150 billion won. The union is now conducting a compliance campaign, refusing overtime and holiday work.
The union is demanding bonuses equal to 20% of operating profit, an average wage increase of about 14%, a 30 million won incentive payment per employee, and a fixed raise of 3.5 million won.
It is also reportedly demanding prior agreement on personnel matters such as hiring, promotions, and disciplinary action, as well as management issues including spin-offs, mergers, and transfers, raising concerns about interference with management autonomy.
If the strike causes production to stop for an extended period, losses could reach hundreds of billions of won. Another key factor is that the Contract Development and Manufacturing Organization (CDMO) business is a "trust industry." Global pharmaceutical companies place the highest priority on stable supply capacity. If delivery is delayed or quality problems arise, they are likely to shift orders to competitors immediately.
Legal disputes over the union's bonus demands are also intensifying. Kwon Jae-yeol, a professor at Kyung Hee University Law School, explained, "From the perspective of corporate law, operating profit basically belongs to shareholders, and the distribution of profits is the exclusive authority of the shareholders' meeting." He added, "A system that fixes a certain percentage of operating profit as bonuses conflicts with the existing corporate law framework, and a structure in which shareholders bear the risk while only the profits are shared could raise fairness concerns."
An industry official said, "This situation is not just about one company; it is an event that tests the global trust in K-Bio." The official added, "To prevent the hard-earned trust of South Korea's bio industry from being shaken, both labor and management must find a solution from the standpoint of industrial competitiveness."
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vrdw88@fnnews.com Kang Jung-mo Reporter