A banner criticizing Samsung Electronics’ union strike, put up by a shareholder on a street tree near Leeum Museum of Art in Yongsan-gu, Seoul, on the 6th. Photo by Lee Seok-jin
“This is a nation-ruining strike aimed at the jugular of the semiconductor industry.”
On the road leading up to Leeum Museum in Seoul’s upscale Hannam-dong neighborhood in Yongsan district, angry voices from Samsung Electronics (005930.KS) shareholders echoed through the affluent residential area. With the global battle for semiconductor supremacy in full swing, shareholder groups have taken to the streets of Hannam-dong one after another, hanging banners in a bid to rein in the union after it pulled out the general strike card.
According to reporting compiled by The Seoul Economic Daily on Monday, the “Samsung Electronics Shareholder Action Headquarters” recently installed a row of banners along the road to Leeum Museum strongly condemning the union’s strike. The move came a day after the “Korea Shareholder Movement Headquarters” warned it would file damages claims against all union members participating in the illegal strike, adding fresh criticism from a new shareholder group.
The banners hung by the Shareholder Action Headquarters carried pointed rebukes, including: “The Samsung union strike will only hand a windfall of explosive growth to semiconductor firms in other countries.” Other messages read, “Public opinion has turned its back,” “A strike in essential semiconductor processes is more serious than a strike by the military or police,” and “Ban through legislation this nation-ruining strike that holds the national economy hostage.”
Market concerns are already showing up in the numbers. Citi Research recently lowered its price target for Samsung Electronics to 300,000 won from 320,000 won in a report. While Citi maintained its “buy” rating, citing solid memory market conditions, the strike risk weighed on its outlook. The investment bank said provisions related to performance-based pay amid the intensifying union strike would put downward pressure on earnings. It also cut its operating profit forecasts for 2026 and 2027 by 10% and 11%, respectively. In contrast, no such report has emerged for rival SK hynix (000660.KS), which has also outpaced Samsung in share price gains.
As the situation escalated, the board of directors also stepped in to contain the fallout. Shin Je-yoon, chairman of Samsung Electronics’ board, said through the company’s internal message board on Sunday that “massive losses from the strike and customer defections will inflict serious damage on shareholders and the local community.” In an unusual appeal, he warned that if “just-in-time supply,” which lies at the heart of the semiconductor industry, is disrupted, it would deliver a fatal blow to the national economy overall, including tens of billions of dollars in export losses and a rising exchange rate.
The union has given notice of an 18-day general strike starting on the 21st, demanding 15% of annual operating profit be paid out as performance bonuses. Based on the market’s estimated operating profit, that amounts to a staggering 45 trillion won ($33 billion). “While competing countries are pouring in astronomical subsidies and racing ahead, tying our own feet with an internal strike is clearly an act of self-harm,” an industry official said.
A banner criticizing Samsung Electronics’ union strike, put up by a shareholder on a street tree near Leeum Museum of Art in Yongsan-gu, Seoul, on the 6th. Photo by Lee Seok-jin
A banner criticizing Samsung Electronics’ union strike, put up by a shareholder on a street tree near Leeum Museum of Art in Yongsan-gu, Seoul, on the 6th. Photo by Lee Seok-jin
A banner criticizing Samsung Electronics’ union strike, put up by a shareholder on a street tree near Leeum Museum of Art in Yongsan-gu, Seoul, on the 6th. Photo by Lee Seok-jin