Samsung Electronics has avoided a planned 18-day strike at its semiconductor division after reaching a provisional agreement with labour unions late Wednesday night in Seoul. The deal was finalised just hours before the walkout was due to begin and was mediated by the South Korean government due to concerns over major economic disruption.
Under the agreement, employees in Samsung’s chip division are expected to receive average annual bonuses of 509 million won, or about $338,000 (approximately ₹2.8 crore).
The bonus plan is linked to company performance. Workers will receive a total payout equal to up to 12% of the semiconductor division’s annual operating profit. This includes 10.5% paid in company stock and 1.5% in cash. The average figure is based on around 78,000 employees and expected annual operating profits of 331 trillion won.
The agreement also sets long-term conditions. The bonus system will run for 10 years and depends on performance targets. The semiconductor division must earn more than 200 trillion won in annual operating profit between 2026 and 2028, and at least 100 trillion won per year through 2035 for the scheme to continue.
The deal comes at a time when Samsung’s chip business is performing strongly, supported by growing demand for artificial intelligence-related technologies. The company reported 53.7 trillion won in operating profit in the first quarter of 2026. Samsung is also a major contributor to South Korea’s economy, making labour stability in the company an important national concern.
Government officials stepped in to prevent the strike, warning that an 18-day shutdown could cause losses of around 1 trillion won, with wider economic impact potentially reaching 100 trillion won.
Despite the agreement, some Samsung shareholders have raised concerns. They argue that such large profit-based bonuses may require formal approval under South Korean corporate law and are considering legal action if proper procedures are not followed.
The agreement is still provisional, but it has temporarily ended the risk of a strike. However, discussions over approval and implementation are expected to continue.