Explainer-What are Samsung union workers demanding and how might a strike play out?

Reuters

Tue, May 19, 2026 at 6:12 AM EDT 3 min read

SEOUL, May 19 (Reuters) - South Korean memory chip maker Samsung Electronics is facing its worst-ever strike, with nearly 48,000 workers threatening to walk off production lines on Thursday for 18 days over a dispute about bonus payouts.

Here are key things to know:

WHAT ‌DOES SAMSUNG'S UNION WANT?

Samsung's union has asked the company to abolish a cap that limits bonuses to 50% of annual salaries and to ‌allocate 15% of annual operating profit to a bonus pool that would be distributed to workers. It also wants Samsung to make the changes binding beyond this year.

Samsung made a very ​different offer.

Transcripts of negotiations between the union and Samsung showed that in March, Samsung cited estimates that some staff at smaller rival SK Hynix could receive bonuses equivalent to 607% of their annual salary and proposed that its memory chip workers would gain a bonus exceeding levels that SK Hynix workers receive.

Samsung also proposed bonuses of 50% to 100% for staff in its logic chip businesses.

These bonuses, however, would be a one-off payment for this year. In principle, it does ‌not want to abolish the cap on bonuses at ⁠50% of annual salaries.

WHAT IS DRIVING THIS?

Samsung and SK Hynix have seen profits balloon to record highs thanks to a global shortage of memory chips amid the boom in artificial intelligence. The two companies account for the majority of ⁠global memory production.

Last year, SK Hynix abolished its cap on bonus pay for 10 years, media reports said. This resulted in bonuses more than three times higher than those offered to Samsung workers, prompting many to jump ship for SK Hynix and sparking a surge in union membership, according to Samsung's union.

HOW MIGHT THE STRIKE PLAY ​OUT?

The ​strike promises to be far larger and more damaging than the last walkout to ​affect Samsung in 2024, when about 6,000 workers took part.

Samsung's ‌union says that nearly 48,000 employees, the majority of them chip workers, have signed up to participate. That represents 38% of Samsung Electronics' domestic work force.

A court on Monday partially granted Samsung's request for an injunction, ruling that essential staffing levels at some production facilities must be maintained during any industrial action. Samsung has notified the union that this will require 7,087 workers to report for work even if the strike goes ahead.

The company's chip factories in South Korea operate 24 hours a day across three shifts in locations such as Pyeongtaek and Hwaseong.

WHY IS THIS STRIKE CAUSING SUCH CONCERN?