South Korean President Lee Jae Myung emphasized the importance of respecting both companies’ management rights and labor rights. He made this statement as Samsung Electronics Co. and its unionized workers entered negotiations before a planned 18-day strike. Lee highlighted the need for mutual respect between labor and companies in a democratic and free market economy.
Lee pointed out that workers deserve fair compensation for their labor, while shareholders should receive a portion of corporate profits for assuming risks. The negotiations between Samsung’s management and labor union have faced challenges, particularly regarding performance-based bonuses linked to the company’s AI-related semiconductor business.
The union is reportedly requesting 15% of the company’s operating profits as bonuses, which could amount to a significant sum due to Samsung’s substantial earnings in the AI semiconductor sector. The president emphasized the importance of balancing rights within the framework of the Constitution, ensuring public welfare without compromising fundamental rights.
President Lee cautioned against excessive demands, highlighting the importance of solidarity, responsibility, and shared prosperity. His remarks followed Prime Minister Kim Min-seok’s warning about the potential economic damage from a strike. The government could resort to emergency arbitration under South Korean labor law to prevent severe harm to the national economy or citizens’ daily lives.
