Finance
Unionised Samsung Workers to Hold Rally in South Korea as Labour Unrest Grows
Published by Global Banking & Finance Review®
Posted on April 22, 2026
3 min readLast updated: April 23, 2026
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Samsung’s unions expect about 37,000 workers to rally on April 23 at the Pyeongtaek chip complex, ahead of a potential May strike, as union membership has surged amid frustration over lagging pay compared to rivals like SK Hynix.
Unionised Samsung workers to hold rally in South Korea as labour unrest grows
Labour Unrest and Union Actions at Samsung Electronics
By Hyunjoo Jin
Upcoming Rally and Potential Strike
PYEONGTAEK, South Korea, April 23 (Reuters) - Unions at Samsung Electronics said they expect about 37,000 workers to attend a rally in South Korea on Thursday, ahead of a threatened strike next month that could disrupt chip supplies amid booming demand for artificial intelligence.
The rally, to be held at Samsung's giant chip factory complex in Pyeongtaek, underscores growing labour risks facing the world's biggest chipmaker, which had long been largely immune from worker unrest that has affected other local companies, such as Hyundai Motor.
Background: Shift in Labour Relations
Samsung was previously known for its union-busting activities but saw workers walk out for the first time in 2024. Union membership has since tripled to more than 90,000, representing over 70% of its South Korean workforce of 125,000.
Workers have been emboldened by record profits at chip companies, as booming demand for AI infrastructure has stretched supply and driven prices higher.
Influence of Rival Companies
Crosstown rival SK Hynix in September accepted its union's demand for compensation reforms and hefty bonuses, fueling Samsung employees' frustration over a pay gap and sparking a surge in union membership.
"The phenomenal growth in union memberships reflects a unified and urgent call among employees for change at Samsung Electronics," Choi Seung-ho, who leads Samsung's biggest union, said last week.
Choi said many workers had left for SK Hynix, while other rivals like Micron and even Tesla were wooing Samsung engineers. Samsung does not disclose employee turnover.
Management Response and Uncertainties
In March, Co-CEO Jun Young-hyun acknowledged that Samsung lagged its rivals in wage competitiveness due to sluggish chip earnings, but said the gap would narrow with a chip market recovery.
It remains unclear how many will join the rally. Samsung has warned of legal action should unions disrupt safety facilities that require more than 2,000 workers to operate.
A union member working at Samsung's IT support group said he had been bombarded with requests from colleagues seeking vests to wear at the rally.
If no deal is struck, unions plan to strike for 18 days from May 21.
Potential Impact on Chip Supply and Market
Seo Ji-yong, a business administration professor at Sangmyung University, said a strike could delay shipments to customers, push up chip prices further and benefit rivals. Some experts, however, said factory automation and Samsung's use of subcontractors would mitigate the impact.
Key Issues in Negotiations
Performance Pay and Salary Demands
One of the most contentious issues is a union demand to scrap a cap on performance pay, currently set at 50% of annual base salary, which management has rejected.
The union is also seeking 15% of annual operating profit to be allocated as performance pay and a 7% hike in basic salaries.
Management's Counteroffers
Management has offered 10% of operating profit for performance pay and additional funding to ensure memory division employees receive higher payouts than competitors this year.
SK Hynix last year approved an overhaul, including the removal of the bonus cap, widening the pay gap with Samsung workers, unions said.
SK Hynix on Thursday posted a more than five-fold jump in first-quarter operating profit to a record high.
(Reporting by Hyunjoo JinEditing by Ed Davies)
Key Takeaways
- •Union membership at Samsung has surged—now a majority—driving rising labor unrest despite the company’s historical resistance to unions (over 62,000 members, majority status)
- •Rally expected to draw tens of thousands (30,000–40,000) at Pyeongtaek on April 23, prompting road closures and police deployment
- •Unions demand removal of performance‑pay cap and larger bonuses (15% of operating profit), citing SK Hynix’s more generous terms, while management offers less
Frequently Asked Questions about Unionised Samsung workers to hold rally in South Korea as labour unrest grows
1Why are Samsung workers planning a rally in South Korea?
Samsung workers plan to rally to demand better compensation and the removal of the performance pay cap due to growing frustration over wage disparities.
2When is the Samsung workers' rally scheduled and where will it take place?
The rally is scheduled for Thursday at Samsung's chip factory complex in Pyeongtaek, South Korea.
3What are the union's main demands in negotiations with Samsung management?
The union seeks to scrap the cap on performance pay, allocate 15% of annual operating profit to performance pay, and secure a 7% salary increase.
4How could a Samsung workers' strike impact the chip industry?
A strike could cause chip supply disruptions, delay deliveries, and raise chip prices, though automation and subcontractors may offset some effects.
5How has union membership at Samsung changed recently?
Union membership at Samsung has tripled since the first walkout in 2024, now comprising over 90,000 members or more than 70% of its South Korean workforce.
