Tens of thousands of employees at Samsung Electronics assembled at the company ampus in Pyeongtaek, south of Seoul, to press management over pay and benefits, marking the largest walkout of its kind since workers began collective action earlier this year. Union organisers estimated the crowd at 40,000, and union leaders warned that, unless negotiations produce satisfactory terms, they will mount an 18-day strike beginning May 21 that could interrupt chip production.
The rally focused on a pronounced pay gap the union says exists between Samsung and crosstown rival SK Hynix. Union members argue this disparity is driving staff departures to SK Hynix and undermining morale within Samsunglectronics hip operations.
"In reality, many employees are leaving for SK Hynix," said Song Yong-gi, 39, a logistics worker on an assembly line in Samsunglectronics hip division. "At the end of the day, more than 90% of employees work for pay, and the compensation gap has become so wide that it riving these moves," Song added. Many demonstrators wore black vests during the sit-in at the Pyeongtaek site and echoed claims that a number of colleagues had left for the rival firm.
The Samsung Electronics Labour Union outlined a specific example it says illustrates the gap: a chip division employee with an annual base salary of 76 million won would be entitled to 38 million won in bonus pay for 2025 under current terms at Samsung, which the union says is less than a third of what a similarly paid employee at SK Hynix would qualify for. The union also reported that membership has surged to more than 90,000, representing over 70% of Samsunglectronicsmployees in South Korea.
A central point of contention is a cap on bonus payments that Samsung currently maintains at 50% of annual base salary. Union leaders are demanding the cap be removed. According to the union, SK Hynix accepted its union emand to eliminate such a cap last September, a move that helped trigger increased union enrolment and heightened expectations among Samsung workers.
Beyond removing the bonus cap, the union is seeking that 15% of annual operating profit be allocated as bonus pay and is calling for a 7% rise in basic salaries. Management has countered with an offer to allocate 10% of operating profit for performance pay and has proposed additional funding intended to ensure employees in Samsunglectronics nd in the memory division receive payouts that exceed competitors this year.
Company representatives said they will continue efforts to secure a swift agreement in wage talks. An unnamed Samsung official cautioned that production stoppages resulting from "even a single strike" could harm customer trust and take years to repair, underscoring management oncern about the potential operational consequences of a protracted work stoppage.
Union organisers have signalled the planned 18-day strike would begin on May 21 if demands are not met. They and others at the Pyeongtaek action warned that a prolonged walkout could delay shipments, tighten chip supply, and potentially push chip prices higher while creating opportunities for competitors.
Context and implications
The dispute centers on bonus structure and its distribution, the size of the bonus pool tied to operating profit, and base salary increases. Management and union proposals differ materially on the share of operating profit to be distributed as performance pay and on whether to maintain the 50% cap on bonus payments.
The union reports SK Hynix accepted removal of the bonus cap and secured substantial bonus reforms last year, a development cited by Samsung workers as a factor in increasing union membership and in setting compensation expectations.
Both sides have framed the talks around retention, morale, and competitive positioning in a market shaped by demand for AI-related memory chips. The union says that compensation differentials have contributed to staff movement toward rivals, while management highlights the risks a strike would pose to customer relationships and the timeliness of deliveries.