A group of Samsung Electronics shareholders has threatened legal action against a tentative agreement between the South Korean tech giant and its largest labour union, escalating tensions over a deal that helped avert a major strike.
The agreement, reached late Wednesday, includes revised wage increases and a new bonus structure for employees, with parts of the payouts tied to company stock over a 10-year period. The deal temporarily halted plans for an 18-day strike involving tens of thousands of workers.
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The dispute at Samsung Electronics comes amid a global artificial intelligence boom that has significantly boosted the company’s profits and strengthened South Korea’s export-driven economy, particularly in the semiconductor sector.
A group of shareholders of Samsung Electronics on Thursday called the tentative wage deal struck between the company and its labor union illegal, vowing to take legal action against it.https://t.co/lMlEYKAdEH
— The Korea Times (@koreatimescokr) May 21, 2026
However, the Korea Shareholder Action Headquarters, a shareholders’ advocacy group, criticised the agreement and staged a protest near the residence of Samsung chairman Lee Jae-yong. The group argued that the profit-linked bonus structure was not approved through proper shareholder procedures and therefore lacks legal validity under South Korea’s commercial regulations.
They warned they would pursue all available legal avenues to block any company payouts based on the deal if it is implemented without formal shareholder approval.
Under the tentative agreement, employees will vote on the deal between May 23 and May 28. The union, representing around 70,000 workers, had previously pushed for higher bonuses, arguing that rival chipmaker SK hynix offered significantly larger payouts.
The agreement also establishes a performance-based bonus pool linked to semiconductor division profits, with payouts distributed between overall division performance and individual business units.
South Korea’s government welcomed the resolution of negotiations, which were mediated by the labour ministry, highlighting the importance of avoiding disruption in the country’s key semiconductor industry, which accounts for a large share of national exports.
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Samsung shares rose sharply following the announcement, reflecting investor optimism that a strike had been avoided and production stability maintained.
The shareholder challenge now adds uncertainty over whether the agreement will proceed smoothly, despite employee and government support.