Samsung’s order partially averts an impending labor strike. But it’s not over yet.

Samsung won an injunction to partially block a planned strike by its South Korean workers later this week. However, it may not completely halt all industrial action, as up to 50,000 Samsung workers are set to walk off the job this Thursday. If it continues, it will be the largest strike in the history of the technology company.

The controversy fueling organized labor action is over bonuses. As reported by Yonhap, South Korea’s state-run news agency, the union demanded that Samsung set aside 15 percent of operating profit for performance-based bonuses, remove the cap on such payments and commit to a fixed calculation formula. Samsung has reportedly offered to give away 10 percent of operating profits for bonuses in lieu, and issued a one-time special compensation package.

Initial talks broke down last week after Samsung and the union were unable to reach an agreement, according to Reuters. Last-minute talks resumed on Monday, facilitated by the South Korean government. Unless an agreement is reached, unionized Samsung workers will go on strike for 18 days starting May 21.

However, the new law will prevent workers from doing anything as part of a strike. As Yonhap reports, the Suwon District Court ordered on Monday that unionized Samsung workers cannot take over company services or interfere with other workers. Normal staffing levels should also be maintained when safety and security issues are involved, the news agency reported, such as when maintenance work is needed to prevent equipment damage.

It is not yet clear how this will affect the strike plans of Samsung workers. However, while the order may dampen the threat of industrial action, it does not appear to have completely stopped it.

The South Korean government is working to prevent a Samsung strike

Samsung union meeting in Pyeongtaek, South Korea, April 23, 2026.
Credit: SeongJoon Cho / Bloomberg via Getty Images

The Samsung strike is of great concern to the South Korean government. Samsung accounts for more than 13 percent of South Korea’s GDP by 2024, according to the country’s media group Edaily, and is its largest employer with more than 125,000 employees. The planned industrial action is expected to involve more than a third of this workforce, and could have a major impact on the South Korean economy.

“Just one day of shutdown at Samsung Electronics’ semiconductor plant is expected to cause a direct loss of up to 1 trillion won. [approximately $US667 million],” said Prime Minister Kim Min-seok on Sunday, as reported by the newspaper South China Morning Post. “The biggest concern is that temporary shutdowns in semiconductor production lines lead to months of downtime.”

Kim went on to say that if Samsung and the union cannot reach an agreement, the government will consider issuing an emergency arbitration order under South Korean law. Per The Korea Timesthis allows the Department of Labor to suspend any strike for up to 30 days if “it appears that it will seriously damage the national economy or disrupt the daily life of citizens.”

Samsung union meeting at Samsung Electronics Pyeongtaek Campus on April 23, 2026.
Credit: Chung Sung-Jun / Getty Images

South Korean President Lee Jae Myung also discussed this issue, and posted it on social media on Monday.

“Employees must be able to receive fair compensation for their work to provide their services, and shareholders who bear the risk and loss of their investment share in the company’s profits,” Lee wrote in X, translated by the forum. Later he added, “Under the current Constitution, the basic rights of all citizens are guaranteed, but they may have restrictions within the scope that do not violate their essential content due to public welfare and other reasons.”

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Samsung recently announced that its Q1 operating profit this year was ₩57.2 trillion (about $38.1 billion), a “high level” driven by increased demand for AI chips. This is a significant increase compared to the same quarter last year, when Samsung reported an operating profit of ₩6.7 trillion (about US$4.4 billion).