Samsung’s management has offered to allocate 10% of operating profit to bonuses and provide a one-time special compensation package, according to\u00a0South Korean news agency Yonhap.<\/a><\/p>\n Shares of Samsung Electronics jumped as much as 6.65% on Monday before paring gains to around 3%.<\/p>\n Economic fallout<\/p>\n On Sunday, South Korean Prime Minister Kim Min-seok reportedly <\/a>said that the government would explore all possible response measures, including “emergency adjustments,” if the strike risks causing “significant damage.”<\/p>\n Under South Korean law,\u00a0the labor minister\u00a0can invoke\u00a0an “emergency adjustment” to suspend industrial action for\u00a030 days<\/a> if a dispute is deemed likely to harm the economy or daily life.<\/p>\n Kim described Monday’s negotiations as the final opportunity to avert the strike, adding that “the economic losses we will face will be beyond imagination.”<\/p>\n The prime minister estimated that the direct losses from the strike could reach 1 trillion won ($664.7 million). The economic loss could rise to as much as 100 trillion won if chip production disruptions force Samsung to scrap semiconductor wafers already in production.<\/p>\n However, Samsung’s workers’ union disputed the impact of the strikes, saying in a statement<\/a> that previous production pauses had occurred for equipment inspection, maintenance and process adjustments. <\/p>\n It also stated that the government did not adequately review the union’s rebuttal materials and focused solely on management claims. <\/p>\n Samsung Electronics accounts for 22.8% of South Korea’s exports and 26% of its total market capitalization, he highlighted. Seoul’s presidential office also said Samsung Electronics revenue accounts for 12.5%<\/a> of South Korea’s GDP. <\/p>\n Analysts have raised concerns about concentration risks<\/a> in South Korea’s stock market, with an overreliance on a small group of companies raising the risk of volatility and vulnerability to geopolitical shocks, including a slowdown in data-center spending.<\/p>\n Stock Chart IconStock chart icon Kim’s statements also followed an X post<\/a> by Finance Minister Koo Yun Cheol last week<\/a>, warning that “strikes must never happen under any circumstances.”<\/p>\n “Samsung Electronics is an important company that the world is watching,” Koo wrote. “Considering the current management situation and its impact on the national economy, both labor and management sides must continue to strive to achieve principled negotiations.”<\/p>\n Samsung chairman Lee Jae-yong on Saturday issued a rare public apology to customers worldwide for causing “worry and anxiety,” according to South Korean media reports.<\/a> <\/p>\n More than 47,000 workers could participate in the strike, the union said.<\/a> <\/p>\n It also said a rally on April 23, which drew 40,000 workers, led to a 58% drop in foundry production and an 18% decline in Samsung’s memory production that day. The union estimated an 18-day strike could cost Samsung about 30 trillion won, or about $20 billion.<\/p>\n \u2014 CNBC’s Miko Jang contributed to this report. <\/p>\n![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
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