IT之家 May 17 News – With only four days left before the scheduled general strike at Samsung Electronics, the South Korean government has strongly urged both labor and management to abandon the extreme measure of a strike and resolve the crisis through dialogue and negotiation. The government fears that the strike could trigger a major economic disaster: daily direct losses could reach up to 1 trillion won (approximately 45.54 billion yuan at current exchange rates, as noted by IT之家), and if production comes to a complete halt, the losses could be as high as 100 trillion won (approximately 455.4 billion yuan at current exchange rates). The South Korean government has made clear that it will use all feasible measures to protect the national economy, including exercising its emergency adjustment powers.

On May 17 local time, South Korean Prime Minister Kim Min-seok delivered a national emergency address at the Seoul Government Complex regarding the labor situation at Samsung Electronics, with Chief of Policy Office Yoon Chang-ryeol, Minister of Employment and Labor Kim Young-hoon, and Minister of Trade, Industry and Energy Ahn Duk-geun in attendance. Earlier that day, the government held its second emergency ministerial meeting to conduct an in-depth analysis of the potential cascading effects of a Samsung Electronics strike on the entire domestic supply chain and to discuss various response measures.

Prime Minister Kim Min-seok characterized the current situation as an extremely serious crisis, warning that a strike would cause staggering economic losses. He noted that semiconductor production lines must sequentially go through hundreds of ultra-high-precision processes, and even a brief halt would result in the scrapping of all products in process.

He expressed grave concern, stating that if the factory were shut down for just one day, the direct loss could be as high as 1 trillion Korean won. If a large number of wafers are forced to be scrapped, the economic loss could reach up to 100 trillion Korean won. Restarting the production line and restoring stable operation often takes several months, during which the economic losses will continue to expand.

Samsung Electronics is a core pillar of the Korean economy, accounting for 22.8% of South Korea's total exports and 26% of the total market capitalization of the Korean stock market. Kim Min-seok pointed out that if this leading enterprise, which employs 120,000 people and is linked to more than 1,700 partner companies, experiences production disruptions, it will directly lead to a decline in exports, financial market volatility, and a worsening employment situation, dealing a severe blow to the South Korean economy that will be difficult to heal.

The South Korean government emphasizes that now is a critical window period that will determine the competitive landscape of the global AI semiconductor industry. In February this year, Samsung Electronics took the lead in achieving mass production of the fourth-generation high-bandwidth memory (HBM4, sixth-generation high-bandwidth memory) worldwide. At the same time, its semiconductor foundry business continues to secure orders from global tech giants, marking an important turning point for the company to turn from losses to profits.

Prime Minister 金民锡 warns that South Korea's semiconductor industry has just entered a phase of full recovery and growth, bearing the critical responsibility of driving the nation's economic rebound. As global companies ramp up investments and fiercely compete for market share, if Korean firms stall due to internal labor disputes, the hard-won strategic advantages will be handed over to competing nations. He emphasized that once the industry's leading position is lost, regaining it later will be exceedingly difficult.

Earlier, the Minister of Employment and Labor personally mediated and persuaded both sides, leading to a consensus to restart mediation negotiations led by the Central Labor Relations Commission on May 18. The Korean government expressed sincere approval of this development.

However, Prime Minister 金民锡 stated bluntly that the negotiations on the 18th represent the last chance to prevent a strike, sternly warning both labor and management not to miss this opportunity. He urged the union to abandon strike demands and choose negotiation and compromise, while demanding that corporate management acknowledge union demands and proactively take responsibility. He also called on Samsung Electronics to present a solution that aligns with public sentiment and balances the interests of both parties.

金民锡 noted that Samsung Electronics' current achievements are inseparable from the substantial tax incentives provided by central and local governments, as well as the full support of all Korean citizens. These accomplishments belong to the entire Korean people.

The South Korean government continues to advocate for peaceful dialogue between labor and management, while also taking a tough stance: if the strike eventually breaks out and is expected to cause large-scale economic damage, the government will decisively take various legal control measures. 金民锡 finally stated that once the strike jeopardizes national economic security, the South Korean government has no choice but to take all lawful countermeasures, including exercising the right of emergency adjustment, in accordance with the law.

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