South Korea is preparing emergency measures to prevent a possible labour strike at tech giant Samsung Electronics, amid concerns the disruption could severely impact the country’s economy.
South Korean Prime Minister Kim Min-seok said the government is prepared to consider all available options, including emergency arbitration, to avoid industrial action at the world’s largest memory chip manufacturer.
Samsung and its labour union are scheduled to resume salary negotiations on Monday with the help of a government mediator in hopes of reaching an agreement.
Officials warned that even a single day of disruption at Samsung’s semiconductor factories could result in direct losses of around 1 trillion won, equivalent to approximately RM3.2 billion.
Kim said the government is especially worried because temporary production shutdowns at semiconductor facilities could leave manufacturing lines inactive for months.
He added that the broader economic impact could potentially balloon to 100 trillion won, or roughly RM320 billion, if semiconductor materials and production inventories are damaged or forced to be discarded during a prolonged strike.
The South Korean government is now considering invoking an emergency arbitration order, a rarely used legal measure that temporarily bans strike action for 30 days while authorities continue mediation efforts.
The move would be considered highly unusual, especially under South Korea’s current labour-friendly administration.
Samsung’s labour union has reportedly pledged to continue negotiations in good faith in hopes of reaching a settlement with management.
According to government figures, Samsung Electronics contributes about 22.8 per cent of South Korea’s total exports and accounts for around 26 per cent of the country’s domestic stock market value.
The company also employs more than 120,000 workers and works closely with approximately 1,700 suppliers nationwide.
The potential strike has sparked wider concerns over possible disruptions to the global semiconductor supply chain, with Samsung remaining one of the world’s most important chip manufacturers.
