A shareholder group in South Korea has warned it may pursue legal action against all union members at Samsung Electronics if a planned general strike results in damage to key corporate assets, escalating tensions in an already widening labor dispute.
The group, which calls itself the Korea Shareholder Movement Foundation, said on May 5 that it would seek damages if the strike is deemed illegal and causes harm to the company, arguing that workers could be held jointly liable under legal principles governing third-party rights violations.
The investors also warned Samsung Electronics management against agreeing to what they described as excessive performance-based compensation. They said that if executives approve blanket bonus arrangements tied to operating profit in order to avert a strike, it could constitute a breach of shareholder rights. The group said it would consider a derivative lawsuit against executives under corporate law.
Separately, the group said it would pursue claims for unjust enrichment against the labor union and called for broader public discussion in South Korea’s legislature on how corporate profits should be distributed among shareholders, employees and the state.
The escalation comes as labor tensions intensify at Samsung Electronics, with the company’s union planning a strike from May 21 through June 7. The union is demanding that 15% of annual operating profit be allocated as bonuses and that caps on payouts be removed.
Based on analyst estimates of about $225 billion in annual operating profit equivalent, the union’s demand would translate into roughly $33.75 billion in performance bonuses. That figure would far exceed the company’s estimated $8.25 billion in shareholder dividends last year and its roughly $27.75 billion in research and development spending.
Investor pressure has added to growing concerns inside the company. The chairman of Samsung Electronics’ board, Shin Jae-yoon, said on an internal company message board that the situation was drawing serious attention from shareholders, customers and the public, and apologized for the disruption.
He warned that delays in semiconductor development or production could undermine Samsung’s competitiveness in the global market, where timing and customer trust are critical.
