Once, the term "Samsung After" was used to describe subsidiaries of Samsung Electronics, reflecting envy over its dominant performance and treatment. Recently, however, a new hierarchy has emerged within Samsung Electronics, deepening divisions between its business sectors.
Concerns are growing that the rising resentment from employees in other divisions toward the Device Solutions (DS) sector, which demands average performance bonuses in the millions of won, could harm organizational cohesion.
As of May 7, labor disputes over the DS sector's excessive compensation demands have escalated, raising the possibility of a total strike. Meanwhile, employees in the Device Experience (DX) sector feel increasingly marginalized. While the DS sector thrives on the growing demand for AI semiconductors, the DX sector, responsible for mobile, TV, home appliances, and telecommunications equipment, struggles amid global consumer slowdowns and rising costs.
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 worsening performance, with the home appliance division recording losses.
This performance gap is shaking organizational morale, with the semiconductor sector having a stronger justification for performance bonuses, while the DX sector focuses on cost-cutting and maintaining profitability. An industry insider noted, "The economic conditions for DS and DX within Samsung Electronics are completely different," warning that the bonus debate could lead to feelings of relative deprivation between the divisions.
The internal rift is also manifesting as labor conflicts. The super-large union, dominated by DS sector members, is leading joint protests, while the DX-based union has withdrawn from the joint action committee. Although this appears to be a difference in strategy, many in the industry interpret it as a buildup of dissatisfaction among DX members who feel sidelined in the DS-centric bonus negotiations.
Management is expressing concern as well. With fierce competition from rivals like SK Hynix and Micron, there is a pressing need to regain competitiveness in high-bandwidth memory (HBM) and expand customer bases. The realization of strike risks could disrupt production and damage customer trust. On the same day, Vice Chairman Jeon Young-hyun and CEO Roh Tae-moon emphasized the importance of maintaining 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, speaking anonymously, remarked, "The push for a total strike is primarily driven by DS, which is increasing dissatisfaction among DX employees. Nowadays, it feels like DS and DX are different organizations with conflicting interests rather than parts of the same company."
* This article has been translated by AI.
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