South Korean labor unions demand bonuses after Samsung payout — reassignment of power chip staff sparks non-memory backlash
Han Jin-manChoi Seung-hoSamsung Electronics

South Korean labor unions demand bonuses after Samsung payout — reassignment of power chip staff sparks non-memory backlash

South Korean labor unions are demanding bonuses after Samsung Electronics announced staff reassignments from its power semiconductor division, igniting discontent among non-memory employees who face a significant bonus gap compared to their memory division counterparts, with estimates showing a disparity of hundreds of millions of won.

Seoul Economic Daily Seoul Economic Daily24 July 2026 · 00:43 UTC
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Samsung Electronics is facing backlash from labor unions as it reassigns staff from its power semiconductor (CSS) business team to other units within its Device Solutions division. This move has sparked significant unrest among non-memory employees, who are frustrated by a bonus gap that sees memory division workers receiving an estimated 600 million won each, while their non-memory counterparts are set to receive only 210 million won—a third of that amount.126710

Choi Seung-ho, chairman of the Samsung Electronics branch of the Cho-il Enterprise Labor Union, highlighted the issue in an internal bulletin, stating that an in-house free agent system was initiated for some CSS staff, with phased reassignments planned to various units including memory and foundry. The CSS team comprises about 500 employees, and the reassigned staff will be subject to the bonus standards of their new units starting in 2025.89

The discontent is exacerbated by restrictions on personnel movement between divisions, which has led to a growing desire among non-memory employees to seek opportunities elsewhere. A recent survey revealed that 81.5% of foundry employees and 75.4% of System LSI employees are willing to change jobs within two years, compared to just 32.7% in the memory division.

Chairman Choi emphasized the union's commitment to advocating for improved working conditions, stating, 'We will continuously demand that management improve working conditions, and we will work to create related improvement items in the 2027 negotiations.'11

Key Insight
“The reassigned CSS staff face a bonus gap: memory division employees get an estimated 600 million won per person, while non-memory staff receive only one-third of that. A union survey found 81.5% of foundry and 75.4% of System LSI employees willing to change jobs within two years, far exceeding memory's 32.7%.”
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Seoul Economic DailySeoul Economic Daily
“Samsung Electronics (005930.KS) will reassign staff from its power semiconductor (CSS) business team to other business units within its Device Solutions (DS) division.”
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