Journalist
SEONGJUN JO
critic@ajunews.com
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Samsung Electronics Union Accepts Government Mediation Ahead of Strike The labor dispute between Samsung Electronics and its union has shifted from a potential clash to a phase of renegotiation. However, the threat of a general strike remains, and tensions could rise again depending on the outcome of upcoming negotiations. On May 8, the union announced it would participate in post-adjustment procedures on May 11-12 at the request of the government. Previously, the union had warned of a general strike on May 21 due to unresolved disagreements over wages and performance bonuses. Industry analysts interpret this decision as more than just a postponement. The government's direct involvement in mediation suggests that the labor conflict at Samsung Electronics could have significant repercussions across the industry. Particularly as Samsung accelerates its efforts to regain semiconductor competitiveness and transition to a company-wide artificial intelligence (AI) strategy, any production disruptions or organizational instability could increase management burdens. Internally, Samsung is simultaneously addressing high-bandwidth memory (HBM) competition, investing in next-generation packaging, and implementing AI-driven organizational innovations. The union appears to be strategically using government mediation to secure a stronger negotiating position and public support rather than immediately launching a general strike. However, the union has reiterated that it will proceed with a strike if satisfactory results are not achieved, indicating that tensions could escalate if the post-adjustment talks do not lead to a substantive agreement. Business circles anticipate that future discussions will focus not just on wage increases but also on the criteria for performance bonuses and the predictability of the compensation system. Given the significant performance disparities among different divisions within Samsung, conflicts over the compensation structure may recur structurally. One industry insider remarked, "The government's direct intervention indicates that this is viewed as a matter beyond a simple labor dispute. In a competitive environment for HBM and AI, a prolonged strike would pose significant burdens for Samsung Electronics."* This article has been translated by AI. 2026-05-08 17:43:30 -
Samsung Electronics Launches Development of Humanoid Robots Samsung Electronics is re-establishing its focus on robotics. The company is bolstering its Future Robotics Team and has created a new execution organization within its Device Experience (DX) division to oversee AI-based future projects, accelerating preparations for the commercialization of manufacturing robots and humanoids. According to industry sources on May 8, Samsung's DX division has recently conducted internal recruitment for the Future Robotics Team, with applications accepted until today. Prior to the recruitment, Samsung held a briefing for employees to share the team's roles and responsibilities. The Future Robotics Team was established after Samsung secured a major stake in the robotics platform company Rainbow Robotics, and it is responsible for overseeing the development of next-generation robotic technologies, including humanoids. This workforce expansion is seen as a strategic move to transition the robotics business roadmap into the execution phase rather than merely expanding the organization. During a recent earnings call, Samsung outlined its plan to first develop manufacturing robots before expanding into home and retail sectors. The company also indicated it would consider internalizing key robotic components and collaborating with domestic firms, as well as being open to investments and acquisitions if necessary. Samsung's renewed focus on robotics is not a recent development. In 2021, the company formed a task force for robotics commercialization, which evolved into a formal robotics team the following year. In January 2023, Samsung invested approximately 59 billion won in Rainbow Robotics, securing its position as the largest shareholder. Rainbow Robotics, known for its bipedal and collaborative robot technologies, has been viewed as a crucial external technology partner for accelerating Samsung's humanoid development. Within the DX division, there is also a visible effort to integrate robotics as a core aspect of AI transformation. Last August, Samsung established the InnoX Lab, a dedicated organization for key strategic projects within the DX division. This execution-focused team is responsible for the expansion of digital twin solutions, logistics operation innovations, manufacturing automation, and the development of core technologies for humanoid robots. Industry experts interpret the establishment of InnoX Lab as a signal that Samsung aims to approach robotics not merely as a standalone product but as part of an AI-based platform business connecting factories, logistics, homes, and retail. As the smartphone, TV, and home appliance markets mature, robotics is emerging as a new growth axis that can integrate hardware, AI, sensors, semiconductors, and appliances. Samsung's initial focus on manufacturing robots is seen as a strategic choice that considers both quality verification and potential for profitability. However, significant challenges remain before commercialization can be achieved. The humanoid market is rapidly advancing, with global companies like Tesla and Figure AI leading the way. To mitigate the burden of being a latecomer, the speed at which Samsung can combine technologies with Rainbow Robotics, internalize its own components, and integrate with the DX division's product ecosystem will be crucial. An industry insider noted, "The alignment of organization, personnel, external investment, and AI transformation systems has become clearer. The strategy of first achieving results with manufacturing robots and then expanding into humanoids and home robots is likely to be a realistic roadmap." 2026-05-08 13:03:39 -
Coway Reports 1st Quarter Operating Profit of 250.9 Billion Won Driven by Water Purifiers and BEREX Growth Coway reported strong growth in the first quarter of 2026, driven by increased sales of its core products, including water purifiers and BEREX beds. The company attributed its performance to a rise in domestic rental accounts and stable sales growth from overseas subsidiaries.On May 8, Coway announced that its consolidated revenue for the first quarter reached 1.33 trillion won, with an operating profit of 250.9 billion won. This marks a year-on-year increase of 13.2% in revenue and 18.8% in operating profit.Domestic sales amounted to 742.8 billion won, up 9.5% from the previous year. The launch of new products like the Icon Water Purifier 3 and the BEREX Pebble Chair 2, along with the introduction of the home healthcare brand Terasol, contributed to this growth.The 'Coway Festa' promotion, which began in late February, boosted new rental sales across all product lines. Notably, new sales of BEREX beds surged by over 30% compared to the same period last year. The net increase in domestic rental accounts reached 188,000, an 81.8% rise year-on-year.Industry analysts note that Coway is expanding its business focus from water purifiers to include mattresses and massage chairs, enhancing the contribution of BEREX to its overall performance.Overseas, Coway's subsidiaries also experienced growth, with first-quarter revenue reaching 537 billion won, a 20.2% increase from the previous year. The Malaysian subsidiary reported 406.2 billion won, up 23.5%, while the Thai subsidiary saw a 29.3% increase to 55.4 billion won. The Indonesian subsidiary recorded 12.6 billion won, growing by 14.7%. However, the U.S. subsidiary's revenue fell by 4.1% to 57.5 billion won.Kim Soon-tae, Coway's CFO, stated, "We have solidified our market dominance in the first quarter with upgraded new products that continue the legacy of our bestsellers. With balanced sales performance both domestically and internationally, we aim to maintain growth in the second quarter through innovative product launches and enhanced online and offline marketing strategies that support profitability." 2026-05-08 11:55:10 -
SK hynix Launches Initiative to Restore Salmon Migration Path in South Korea SK hynix is partnering with government and local agencies to restore the aquatic ecosystem of the Namdaecheon River in Yangyang, Gangwon Province. The initiative aims to enhance its water-positive activities by returning more water to nature than the company uses in semiconductor production. On May 8, SK hynix announced its collaboration with the Ministry of Climate, Energy and Environment, Gangwon Special Self-Governing Province, Yangyang County, Korea Water Resources Corporation, and Korea Environment Corporation to improve aging weirs along the Namdaecheon. Water-positive refers to the concept where a company returns more water to the environment than it withdraws, contributing to sustainable water management. This initiative will be driven by government policies, public agency projects, and corporate participation. The Namdaecheon is known as a key salmon migration river in South Korea. However, outdated weirs and altered waterways have hindered salmon from reaching their spawning grounds. SK hynix plans to enhance the weirs from 2026 to 2037 to ensure adequate water flow and facilitate fish movement. The company believes this project will help restore the disrupted salmon migration path and improve the continuity of the aquatic ecosystem. It also aims to enhance the living environment for local residents and increase the ecological and tourism value of the Namdaecheon. Previously, SK hynix engaged in environmental improvement activities near its facilities, including a partnership with Cheongju City for the 'One Company, One Stream Love Movement,' focusing on cleaning a 2-kilometer stretch of the Gagyeong Stream. To reduce water usage in semiconductor processes, SK hynix has implemented a wastewater recycling system and set a goal to recycle an average of 138,000 tons of water daily by 2030. Lee Byeong-gi, Chief Production Officer at SK hynix, stated, "This project will demonstrate how corporate water-positive activities can serve as a tool for mutual growth with local communities and the natural environment. SK hynix will continue its sincere efforts to protect water resources."* This article has been translated by AI. 2026-05-08 09:02:54 -
Samsung Faces Internal Strife Amid HBM Competitiveness Concerns Concerns are growing that internal conflicts at Samsung Electronics could undermine its competitiveness in high-bandwidth memory (HBM). The Device Solutions (DS) division is threatening a total strike over demands for increased bonuses, while the Device Experience (DX) division expresses feelings of deprivation amid declining profitability and the withdrawal from the Chinese TV and home appliance market.According to industry sources, the Samsung Electronics union's joint action committee plans to initiate a total strike starting May 21 if wage negotiations with management fail. A key issue is the demand for performance-based bonuses linked to operating profits, spurred by improved results in the DS division due to rising AI semiconductor demand.The mood within the DX division is tense. Samsung recently confirmed its withdrawal from the Chinese TV and home appliance market, a decision attributed to aggressive pricing from local competitors and weak demand. Many in the DX division perceive this as a retreat from a core business.Given that TVs and home appliances have long been vital to Samsung's global brand value, the anxiety among DX employees is palpable. While attention focuses on the DS division's impressive performance and the expanding AI semiconductor market, DX employees feel their contributions, especially amid risks like U.S. tariffs, are being overlooked.The recent departure of the Donghaeng Union, which has many members in the DX division, from the joint action committee highlights dissatisfaction over the prioritization of DS bonus discussions at the expense of DX issues. The Donghaeng Union has called for fair representation and compliance with obligations regarding information sharing and non-discrimination.A DX representative noted, "With nearly half of the company's workforce in the DX division, it will be difficult for management to fully accept the demands centered on the DS division. I believe the DS employees should make concessions before more extreme conflicts arise."Industry analysts warn that Samsung's internal strife could negatively impact its competitiveness in HBM and other memory semiconductors. The DS division struggled in HBM competition until late last year but has since begun to regain its footing, though it has yet to establish fundamental competitiveness.Experts emphasize that major tech clients like NVIDIA prioritize quality, yield, and delivery stability when selecting suppliers. If a strike occurs, the damage to customer trust could be more severe than short-term production disruptions.Concerns are mounting that repeated halts in production due to strikes could lead to lower yields and compromised quality. HBM, which involves stacking multiple DRAM chips and advanced packaging, requires stringent process stability and quality control. Inconsistent yields could result in losing key clients.An anonymous Samsung executive stated, "The union argues that a strike could result in losses of tens of trillions of won, while external estimates suggest that halting semiconductor production could cost 1 trillion won daily. HBM ultimately hinges on yield, and if production lines are repeatedly halted, we risk losing our status as a reliable supplier to key clients like NVIDIA, which is the most serious risk." 2026-05-07 23:03:39 -
Samsung Faces Internal Strife Amid Semiconductor Boom Once a source of self-deprecating humor, the term "Samsung after" referred to non-electronics subsidiaries, highlighting the allure of Samsung Electronics' performance and treatment. Recently, however, a new hierarchy has emerged within Samsung Electronics, deepening divisions among its business units.Concerns are growing that the discontent among employees in other divisions toward the Device Solutions (DS) sector's demands for average bonuses in the millions of won could harm organizational cohesion.According to industry sources, labor disputes over excessive compensation demands from the DS sector's union are escalating, raising the possibility of a general strike. Meanwhile, employees in the Device Experience (DX) sector, feeling sidelined, are increasingly fatigued. While the DS sector thrives on rising demand for AI semiconductors, the DX sector, responsible for mobile, TV, home appliances, and telecommunications, struggles amid global consumer slowdowns and cost pressures.In the first quarter, Samsung Electronics reported an operating profit of 57.2 trillion won, with the DS sector contributing 53.7 trillion won. The DX sector, excluding mobile, has seen stagnant or declining performance, with the home appliance division recording losses.This performance gap is shaking organizational morale, as the semiconductor division has a stronger justification for demanding bonuses, while the DX sector is focused on cost-cutting and defending profitability. An industry insider noted, "The economic conditions for DS and DX within Samsung Electronics are completely different," warning that the bonus dispute could lead to feelings of relative deprivation between the divisions.The rift is also manifesting as labor conflicts. The super-large union, dominated by DS members, is leading joint protests, while the DX-based union has withdrawn from the joint action committee. While this appears to be a difference in strategy, many in the industry interpret it as a buildup of dissatisfaction among DX members who feel excluded from DS-centric bonus negotiations.Management has expressed concern as well. With fierce competition from rivals like SK Hynix and Micron, there is a growing fear that a strike could disrupt production and damage customer trust, especially as the company seeks to regain its competitive edge in high-bandwidth memory (HBM). On the same day, Vice Chairman Jeon Young-hyun and CEO Roh Tae-moon emphasized the need to ensure future competitiveness during wage negotiations.Analysts suggest that Samsung Electronics faces a dual challenge: leveraging the semiconductor boom to strengthen overall competitiveness while also resolving internal conflicts.A Samsung employee, who requested anonymity, remarked, "The push for a general strike is primarily driven by DS, leading to increased dissatisfaction among DX employees. Nowadays, it feels like DS and DX are different organizations with conflicting interests rather than parts of the same company." 2026-05-07 23:02:40 -
LG Electronics Launches All-in-One Heat Pump Boiler to Expand Electric Heating in South Korea LG Electronics is launching an all-in-one heat pump system boiler in South Korea, aiming to capitalize on the shift toward electrification in the heating market. The company plans to expand adoption of residential heat pumps by offering a high-efficiency electric alternative in a market still dominated by gas boilers. The company said Thursday the new product combines the outdoor unit and key system components into a single package. That design eliminates the need for separate refrigerant piping work and can use a home’s existing hot-water pipes, making it easier to meet demand for boiler replacements. LG Electronics has operated a domestic system boiler business since 2011 and has supplied residential all-in-one heat pump system boilers since 2018. The new model uses an air-source heat pump that draws heat from the air to provide space heating and hot water. LG Electronics said it can deliver about four to five times as much heat energy as the electricity it consumes, cutting energy costs by about 40% to 60% compared with fossil-fuel boilers. LG Electronics said the product meets standards tied to a government program to deploy 3.5 million heat pumps by 2035 as part of a plan to cut greenhouse gas emissions by 5.18 million metric tons. While upfront costs are higher than for conventional boilers, the company said government subsidies and energy savings could allow payback within five to six years, depending on usage conditions. The company also highlighted environmental features. It uses R32 refrigerant, which it said has a global warming potential 68% lower than R410A, a refrigerant commonly used in heating and cooling equipment. LG Electronics said the system can supply high-temperature hot water even in low winter temperatures and supports remote control through the LG ThinQ app. Industry observers say South Korea’s heating market remains centered on city-gas boilers, but demand for heat pumps could rise first in new housing and public buildings as carbon-cutting rules and electrification policies take hold. LG Electronics said its heat pump business has already been tested in Europe. At MCE 2026, a global HVAC exhibition held recently in Milan, Italy, both its residential heat pump outdoor and indoor units received awards. The company also cited supply deals for a new housing complex in the Netherlands and projects serving more than 100,000 households across five countries in southern Europe. LG Electronics is also expanding its heat pump lineup beyond residential use to commercial and industrial markets. It supplies its Multi V i system air conditioners to large commercial facilities and is promoting large chillers for industrial sites such as data centers, factories and power plants. The company operates cold-climate research centers in South Korea, Alaska in the United States, Oslo in Norway and Harbin in China to develop next-generation technologies. Lee Jae-sung, president and head of LG Electronics’ ES Business Division, said the company will work to develop the domestic market based on technology and business experience built in Europe and other global markets.* This article has been translated by AI. 2026-05-07 10:05:54 -
South Korea Braces for Delayed Oil-Price Shock as War-Driven Crude Surge Filters In As the war sparked by a surprise U.S.-Israeli strike on Iran enters its third month, South Korean industry is bracing for a delayed surge in energy costs that has so far been held back by inventories and price controls. With companies already facing supply-chain uncertainty, the coming pass-through could add a major new burden. According to industry officials on Tuesday, the Bank of Korea’s data show Dubai crude averaged $61.97 a barrel in January, then more than doubled to $128.52 in March after the war began on Feb. 28. In early May, it has been hovering in the $104 range. Much of the petroleum products now being sold were imported 2 to 4 months ago at an average in the mid-$60s, and electricity rates have not fully reflected the spike because of a cap in the fuel-cost adjustment mechanism. Dubai crude typically feeds into the system marginal price (SMP) for wholesale power with a 4- to 5-month lag, meaning March’s surge is likely to affect power bills directly or indirectly in July and August, when cooling demand peaks. An analysis by the Korea Institute for Industrial Economics and Trade found that a 10% rise in oil prices increases average manufacturing production costs by 0.71%. The biggest hits fall on petroleum products (6.30%), chemical products (1.59%) and rubber and plastics (0.46%). With Dubai crude jumping 87.9% in March alone, the on-the-ground impact could be larger than the headline figures suggest. The path out remains unclear. With U.S.-Iran talks dragging on, the United States has also moved to block all vessels traveling to and from Iran, in what the article described as a “reverse blockade.” Even if the Strait of Hormuz reopens depending on negotiations, it would take six weeks to restore 80% of Gulf oilfield output to normal. Factoring in additional lags from shipping, refining and inventory drawdowns, the cost pressure from high oil prices is likely to persist through the third quarter. Major global investment banks have raised their alerts. Citigroup said Brent could rise above $150 a barrel if supply disruptions continue through June. With Dubai crude already well above $84 a barrel — the refining industry’s break-even level — domestic refiners are expected to enter loss territory starting about two months from now as low-cost inventories run out. Experts warned that today’s surface-level price stability could amplify the shock later. Kim Kwang-seok, head of economic research at the Korea Economic and Industrial Research Institute, said that while energy prices typically rise first at the start of a war, increases later spread to naphtha, ethylene, fertilizer and urea, as well as consumer goods, food and services. If the Middle East war does not end within this month and becomes prolonged, he said, inflation is likely to shift from a concern to a reality. 2026-05-07 05:05:09 -
Taihan targets North American grid investment with HVDC and subsea cables Taihan Electric Wire said it is stepping up its push into the North American power-infrastructure market, highlighting high-voltage direct current (HVDC) and subsea cable technologies. The company said Tuesday it is taking part in the 2026 IEEE PES T&D exhibition in Chicago from May 4 to 7. The event is the largest U.S. gathering in the transmission and distribution sector, bringing together power-equipment makers, utilities and related organizations. Taihan said it is featuring HVDC cables, subsea cables and technologies for replacing aging power grids, focusing on areas where it sees strong project potential as electricity demand rises, renewable energy expands and existing grids age across North America. HVDC was the main focus. Citing its experience supplying 320kV-class HVDC cables in the United States, Taihan introduced solutions for 525kV-class underground and subsea HVDC cables. It also put forward a 525kV-class HVDC subsea cable that it said could be applied to South Korea’s “West Coast Energy Highway” project, underscoring its ability to serve long-distance, large-capacity transmission needs. The company also outlined plans to expand its subsea cable business. Taihan shared its domestic and overseas order track record and provided an update on construction of its second subsea cable plant in Dangjin, which it is pursuing with a target completion in 2027. It also introduced the “Palos” cable-laying vessel dedicated to offshore wind projects and its subsea cable installation subsidiary, Daehan Ocean Works, emphasizing end-to-end capabilities from manufacturing to installation. Solutions for replacing aging grids were also highlighted. Taihan said the technology can increase transmission capacity while using existing conduits, making it suitable for the U.S. market, where demand for grid reinforcement is high. The industry expects demand for related equipment to rise quickly as AI data centers expand and electrification increases pressure to add grid capacity in the United States. Industry observers also say regional transmission bottlenecks are worsening as AI data centers concentrate in areas including Virginia and Texas, potentially accelerating demand for extra-high-voltage cables and substation equipment replacements. For Taihan, securing U.S. references could serve not only to win orders but also as a prequalification factor for future utility tenders, the company said. Song Jong-min, Taihan’s vice chairman, visited the exhibition and met with major North American utilities and business partners. The company said Song reviewed ongoing business with local subsidiary staff and discussed ways to expand cooperation. “North America is seeing rapid market growth as grid investment expands and renewable energy spreads at the same time,” Song said. “Based on the experience and references we have built in the United States, we will continue to expand results in key areas such as HVDC, subsea cables and solutions for aging power grids.”* This article has been translated by AI. 2026-05-06 15:34:09 -
LG Upgrades ‘ThinQ Real’ AI Living Lab to Accelerate Smart Home Development LG Electronics has overhauled a research space used to validate AI-based living environments, stepping up efforts to advance its AI home business. The company said Tuesday it upgraded 'ThinQ Real,' located at LG Sciencepark in Seoul's Magok district. The facility serves as a research hub to refine AI technology using data gathered in a real-life setting and to apply the results to products and services. First built in 2022, the roughly 100-square-meter space has been redesigned to match a typical 30-pyeong home layout. LG said the focus has shifted from comparing different household types to recreating a more common housing form to closely analyze everyday living patterns. The interior is arranged like an actual home, including an entryway, living room, kitchen and bedroom, with furnishings and installations set up to mirror real use. AI appliances, IoT devices and sensors are connected to collect and analyze living data in real time. LG said it built an integrated control environment centered on its AI home hub, 'ThinQ On.' Using generative AI, the system is designed to converse with users in natural language, learn behavior and context, and automatically optimize the home environment. Researchers will run a range of daily-life scenarios in the space, verify automation functions and reflect the findings in products and services. The accumulated data will be used to improve AI algorithms and develop new services, the company said. One citizen said, "If the home responds like a single system rather than appliances working separately, convenience in daily life would increase a lot." LG said the revamp also targets expanded business-to-business demand. It strengthened the site's showroom function so construction firms, telecom companies and interior design businesses can experience AI home solutions, and said feedback gathered during visits will be incorporated into research and development. The company said the location inside LG Sciencepark, where major business divisions and research organizations are concentrated, is also intended to improve collaboration and speed the link between technology development and commercialization. Industry observers said global home-appliance makers are rapidly shifting from product competition to platform competition based on living data, and viewed LG's investment as a signal of a mid- to long-term strategic pivot. Jeong Gi-hyeon, vice president of LG Electronics' HS Platform Business Center, said, "We will quickly advance data-based AI home solutions to improve convenience in customers' daily lives." * This article has been translated by AI. 2026-05-06 10:04:20