Samsung Electronics (005930.KS) -8% as 50K Workers Plan 18-Day Strike; Seoul Issues Ultimatum

Samsung Electronics (005930.KS) faces its largest labor crisis in company history. Approximately 50,000 members of the National Samsung Electronics Union have announced an 18-day general strike beginning May 21, with a final negotiation session set for May 18 at the Central Labor Relations Commission (CLRC) in Sejong City.

Prime Minister Kim Min-seok chaired a second emergency cabinet meeting on May 17 and issued a rare public statement, calling May 18's session "the last chance to prevent the strike." He warned both sides that "the weight of this moment must not be taken lightly," and framed a production disruption at Samsung as a national economic risk rather than a corporate labor dispute. The government did not rule out invoking emergency mediation under the Labor Relations Adjustment Act, which would impose a 30-day cooling-off period.

The core dispute is a performance bonus gap that the union describes as "demotivating." Samsung offered a bonus equal to 607% of annual salary for the memory division — which benefited from the HBM and DRAM supercycle — while foundry and System LSI workers received 50–100%. A marathon negotiation mediated by the CLRC from May 11–13 broke down over the methodology for setting bonus eligibility thresholds.

Samsung's share price has slid roughly 8% over the past week as strike risk was priced in. Wall Street analysts have flagged Micron (MU) and SK Hynix (000660.KS) as potential beneficiaries if Samsung's fabs begin warm-down procedures ahead of a walkout.

The stakes are substantial: Samsung holds roughly 40% of the global DRAM market and ranks second globally in foundry capacity behind TSMC. A multi-week work stoppage would threaten leading-edge memory supply for data-center AI servers and flagship smartphones — markets where Samsung is a primary supplier. According to Yonhap Infomax, the union's striking membership represents about 40% of Samsung's total South Korean workforce, a scale the government is treating with national-security-level urgency.

Watch for: May 18 CLRC session outcome. A failed negotiation likely triggers emergency mediation, buying 30 more days — but the union has signaled it would view government intervention as production coercion. May 21 is the definitive flashpoint.

Not investment advice. Verify all figures with primary sources before acting.