The deal halted what could have become the biggest labor disruption in the history of the world’s largest memory chipmaker, which accounts for nearly 40 percent of the global DRAM market and roughly one-fifth of South Korea’s exports.
The agreement came after weeks of escalating tensions over bonus structures, compensation for employees in loss-making divisions and the removal of caps on performance-based incentives.
The National Samsung Electronics Union (NSEU) announced that the planned strike scheduled for May 21 through June 7 would be suspended pending a vote by union members on the tentative deal.
Under “Protest Directive No. 3” issued Wednesday night, the union said all strike actions previously declared under its earlier directive would be put on hold “until further notice.”
Union members will vote on the tentative 2026 wage agreement from 2 p.m. Thursday through 10 a.m. May 27.
Details were not revealed, but the sticking point would involve compensation for loss-making divisions of Samsung Electronics.
The breakthrough followed more than six hours of direct mediation by Labor Minister Kim at the Gyeonggi Regional Labor Office in Suwon, after earlier series of government-led post-adjustment talks at the National Labor Relations Commission had collapsed over disputes involving compensation for workers in deficit-running business divisions.
Earlier in the day, union chief Choi Seung-ho had declared negotiations deadlocked and vowed to proceed with the strike as planned.
Samsung Electronics had also sharply criticized the union in an internal statement, accusing it of demanding “socially unacceptable” compensation for loss-making units even after the company had already accepted most proposals on incentive structures.
But signs of a late reversal emerged after Samsung quietly deleted the internal statement from its employee bulletin board while negotiations resumed under Kim’s direct supervision.
Vice Labor Minister Kwon Chang-joon later joined the talks around 8:15 p.m., fueling expectations of a dramatic settlement only hours before the planned walkout.
At a late-night joint press briefing following the agreement, union and management representatives appeared together holding hands in a rare public show of reconciliation after months of confrontation.
“We sincerely apologize for causing concern internally,” Choi said, bowing deeply before reporters.
“We have decided to suspend the joint struggle after reaching a tentative agreement through autonomous negotiations led by the labor minister.”
Choi thanked union members for their support throughout the months-long dispute and said the union would focus on stabilizing labor-management relations while preparing for the membership vote.
“We will do our best to become a mature labor union that can proudly present results,” he said.
Yeo Myung-gu, Samsung Electronics vice president and head of the People Team, also apologized to employees for the prolonged negotiations.
“We are grateful to employees, the government and the union for helping bring these talks to a conclusion,” Yeo said.
“This agreement will become the starting point for a new culture of coexistence between labor and management. We will faithfully implement the terms of the agreement and do our utmost for mutual growth.”
Labor Minister Kim framed the settlement as a victory for dialogue over confrontation.
“We never let go of the thread of dialogue because we believe in democracy and the power of conversation,” Kim said.
“Samsung is a national company supported by the Korean people. I hope this agreement will be faithfully implemented so the company can overcome these growing pains in a manner worthy of Korea’s No. 1 company.”
Kim also thanked National Labor Relations Commission Chairman Park Soo-geun for helping narrow differences between the two sides on key issues.
Industry officials had warned that a prolonged strike involving as many as 50,000 unionized workers could severely disrupt semiconductor production and inflict economic damage estimated at up to 100 trillion won ($72 billion).
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