Samsung Electronics Shareholder Group: "Special Performance Bonus Decision Is Shareholder Authority... Management Should Convene Extraordinary General Meeting"

Korea Shareholder Advocacy Group Holds Press Conference in Front of Supreme Court
Plans to File Lawsuit to Suspend Agreement

The Korea Shareholder Advocacy Group, a Samsung Electronics shareholder organization, has once again raised legal objections to the performance bonus payment method agreed upon between Samsung Electronics management and labor union.

Yonhap News Agency

On the afternoon of May 22, the Korea Shareholder Advocacy Group held a press conference in front of the Supreme Court in Seocho-gu, Seoul, and argued that the decision regarding special performance bonuses, as agreed by Samsung Electronics' management and labor union, is an exclusive right of shareholders under the Commercial Act. The group insisted that a process in which the management and union first persuade shareholders must take place. They urged, "If the management submits the performance distribution plan as an agenda item for the general shareholders' meeting, we ask that employees themselves explain and persuade the shareholders directly."

The group pointed out that the core of the provisional agreement—'a special management performance bonus fund equivalent to 10.5% of business performance (with no upper payment limit)'—exceeds the scope of 'wages and other working conditions' that can be arbitrarily agreed upon between labor and management. The Korea Shareholder Advocacy Group stated, "While wages, as compensation for labor, can be determined through management-labor negotiations, the right to dispose of corporate performance is vested exclusively in the general shareholders' meeting under the Commercial Act," and explained, "Neither management nor the labor union has the authority to dispose of corporate performance at their own discretion." The group further added that the company should promptly convene an extraordinary general shareholders' meeting to confirm the legitimate intentions of the shareholders.

The Korea Shareholder Advocacy Group emphasized, "We have no intention of confronting the labor unions of each company. What we seek is not confrontation, but collaboration." They added, "Our goal is to create a platform where employees and shareholders come together to envision a better future for the company."

The group announced that, following a rally held the previous day near the residence of Lee Jae-yong, Chairman of Samsung Electronics, they plan to pursue strong legal action, including filing for an injunction to suspend the effect of the recent labor-management agreement and a lawsuit to confirm its invalidity.

This content was produced with the assistance of AI translation services.