"Sorry for Causing Concern": Samsung Executives Bow Their Heads as Roh Tae-moon Moves to Reassure the DX Division (Roundup)

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[Financial News] Samsung Electronics said it will invest a total of 5 trillion won over the next five years to build a win-win ecosystem and nurture future talent, after the tentative wage agreement between management and labor for 2026 was finally approved. With the labor dispute, which had escalated to the brink of a general strike, now settled for the time being, the company appears to have issued a public apology while unveiling measures to strengthen its social responsibility.
In a joint message on the 27th, Samsung Electronics executives said, "We deeply appreciate the interest and support of the public, shareholders, customers and employees, as well as the government's dedicated efforts to help." They added, "We once again apologize for the worry and concern we have caused."
The two sides had remained locked in an extreme standoff earlier this month, with a warning of a general strike and a breakdown in post-mediation talks at the National Labor Relations Commission. They eventually reached a tentative agreement in a dramatic last-minute breakthrough, and the Samsung Electronics labor union's joint bargaining team announced on the morning of the 27th that the deal was finally approved with 73.7% support in a vote by union members.
The executives said, "This incident has led us to reflect on Samsung's management philosophy of 'Business for the Nation' and 'Talent First.'" They added, "We will deeply examine not only labor relations but also management as a whole so that something like this never happens again."
They also announced plans to strengthen social responsibility, saying, "Over the next five years, we will raise a total of 5 trillion won and invest it in 'building a win-win and healthy ecosystem' and 'nurturing future talent.'" Samsung Electronics plans to use the fund to support small and medium-sized partner companies, especially second- and third-tier suppliers, create an industrial accident fund, expand inclusive finance for vulnerable groups and small self-employed business owners, and promote university-industry cooperation and youth education to cultivate artificial intelligence talent. The specific operating plan will be finalized after discussions by the board of directors and the Compliance Oversight Committee. Addressing employees, the company said, "We are one body, one family," and urged them to "wisely join forces and move in one direction."
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Meanwhile, Roh Tae-moon, head of Samsung Electronics' Device eXperience Division (DX Division), moved quickly after the agreement was reached to calm growing backlash within the DX Division. The deal includes a plan to establish a new "special management performance bonus" for the Samsung Electronics Device Solutions Division. The key feature is the distribution of company stock based on 10.5% of business performance, and the Memory Business is expected to receive bonuses worth up to 600 million won. By contrast, the DX Division, which handles smartphones and Home Appliances, is not eligible for the special bonus. As the likelihood of receiving the existing Overperformance Incentive (OPI) is also seen as low due to weak earnings this year, employees in the DX Division are likely to receive only the 6 million won worth of company stock that will be paid to all employees under the labor agreement. Dissatisfaction is growing among DX Division employees.
In a message to employees on the day, Roh said, "I believe many of you have felt excluded, deprived, disappointed and let down by the recent wage negotiations and their outcome." He added, "As the head of the division, I feel both regret and responsibility that differences in business conditions and industry trends have led to different results across divisions, and I am taking the current reality facing the DX Division seriously."
Roh also stressed that he would personally take charge of restoring the DX Division's competitiveness and rebuilding its growth foundation. He said, "I will approach the task of restoring the DX Division's competitiveness and creating a new path for growth with greater seriousness." He added, "I will personally look into what needs to change by business, where we need to focus more boldly, and what is most urgently needed on the ground."
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Employees in the foundry and System LSI businesses, who will receive smaller bonuses than the Memory Business within the DS Division, are also voicing a sense of relative deprivation. In response, Jun Young-hyun, head of the DS Division, also sent a message to DS employees on the day, saying, "I know better than anyone the sense of responsibility and dedication shown by employees in System LSI and foundry, who have quietly stayed at their posts to secure future competitiveness." He added, "I know that many employees are feeling disappointed," and said, "I will listen more closely to voices from the field and take the lead in working together to restore the competitiveness of each business unit and create a breakthrough for future growth."
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soup@fnnews.com Lim Su-bin Reporter