Samsung Electronics is currently dealing with significant labor unrest at its semiconductor division, despite having reported record-breaking profits in the previous quarter. Earlier today, more than 40,000 workers at its Pyeongtaek chip plant in South Korea initiated a large-scale strike, marking the largest demonstration in the company’s history. In response, traffic control and riot police have been stationed around the Pyeongtaek campus. The protest, organized by Samsung’s labor union and dubbed the “April 23 Struggle Resolution Rally,” saw participation from over a third of Samsung’s total workforce. The workers are demanding the removal of a cap on performance-based pay and are calling for 15% of the company’s operating profit to be allocated as performance bonuses. Analysts predict Samsung Electronics’ operating profit could reach around KRW 300 trillion this year, which would mean approximately KRW 45 trillion in bonuses if the union’s demands are met. The union has warned that if no agreement is reached, an 18-day general strike may commence on May 21, 2026, potentially causing substantial losses for Samsung and disrupting the global memory chip supply chain.
Why are over 40,000 Samsung workers striking at the chip plant in Korea?
