Samsung Finalizes Labor-Management Agreement... Executives Pledge 5 Trillion Won Social Contribution and DX Competitiveness Restoration (Comprehensive)

Official Signing of Samsung Labor-Management Wage Agreement
Executives Vow "Deep Reflection to Prevent Recurrence"
Noh Taemoon: "We Will Find a Breakthrough for the DX Division"

The tentative wage agreement reached between labor and management at Samsung Electronics passed the union members' vote on the 27th, and both parties have now officially signed the wage agreement. On this day, Samsung Electronics’ executive leadership also pledged to prevent future labor-management conflicts and committed to creating a large-scale social contribution fund totaling 5 trillion won over the next five years. Additionally, in response to the backlash from the Device eXperience (DX) Division and to address the aftermath, they sent a message stating, "We will restore the competitiveness of the DX Division."

Samsung Electronics and the joint bargaining group of the Samsung Electronics labor unions held a signing ceremony for the "2026 Wage Agreement" at The UniverSE, located in Giheung, Yongin, Gyeonggi Province, at 11 a.m. on the same day.

The ceremony was attended by Myungkoo Yeo, Executive Vice President and Head of the People Team at the Device Solutions (DS) Semiconductor Division of Samsung Electronics, Vice President Hyungro Kim, Seungho Choi, Head of the Samsung Electronics Branch of the Samsung Group Enterprise-wide Labor Union (Enterprise Union), and Jaewon Kim, Head of Policy Planning at the National Samsung Electronics Labor Union (Jeonsamno).

Executive Vice President Yeo stated, "With the conclusion of this wage agreement, labor and management will come together as one to strengthen our global competitiveness," adding, "I sincerely thank the union and all employees for engaging in the negotiations with authenticity and never abandoning the dialogue until the end."

Chairman Choi said, "Although there were some regrets during this wage negotiation process, I believe that after prolonged discussions and dialogue, labor and management have reached a meaningful agreement," and added, "We will continue to strive to improve the working conditions and protect the rights and interests of Samsung Electronics employees."

On March 18, the 57th Samsung Electronics Annual General Meeting of Shareholders was held at the Suwon Convention Center in Yeongtong District, Suwon City, Gyeonggi Province. Younghyun Jeon, Vice Chairman and CEO of Samsung Electronics as well as head of the Device Solutions Division, presided over the meeting and delivered the opening remarks. Photo by Yonhap News Agency Joint Coverage Team.

On this day, the management took responsibility for the recent situation and promised to prevent the recurrence of conflicts and to support social contributions. Through a statement, Samsung Electronics’ executive team said, "The 'Wage and Collective Agreement' at Samsung Electronics has been finalized with the union’s approval vote," and continued, "We deeply appreciate the interest and support of the public, shareholders, customers, employees, and the government’s dedicated support efforts."

The executive team stated, "This incident has prompted us to reflect on Samsung’s management philosophy of 'contributing to the nation through business' and 'putting talent first.' Going forward, we will approach not only labor-management relations but all aspects of management with humility and engage in deep self-reflection to ensure this never happens again."

Having resolved the conflict, Samsung Electronics announced its plan to further strengthen its social responsibility while continuing technological innovation and bold investments as a pillar of the Korean economy.

The executive leadership emphasized, "Through continuous technological innovation and bold investments, we will ensure that we remain a steadfast pillar of the Korean economy for the future," and added, "We will further strengthen our social responsibility so that Samsung’s growth and achievements can generate positive cycles not only for our employees but for society as a whole."

The most notable aspect is the specific social contribution project totaling 5 trillion won. The executive team announced, "Over the next five years, we will create a fund totaling 5 trillion won to invest in ‘mutual growth and the creation of a healthy ecosystem,’ as well as ‘nurturing future talent.’ We are reviewing support measures for secondary and tertiary small and medium-sized partners, the creation of an industrial accident fund, the expansion of inclusive finance for vulnerable groups and small business owners, industry-academia cooperation for nurturing artificial intelligence (AI) talent, and youth education." The specific methods of contribution will be determined through discussions with the board of directors and the compliance committee.

Internal solidarity within the organization was also reaffirmed. The executive team said, "Employees, including union members, have also agreed to actively participate in these decisions by the company," and urged employees, "We are one body, one family. Let’s pool our wisdom and work together so that we can take pride in being members of Samsung."

While backlash continues among DX Division employees who received relatively less compensation, efforts have begun to ease internal conflict. Noh Tae-moon, President and CEO of Samsung Electronics (and head of the DX Division), sent a message to DX Division employees protesting the labor-management wage agreement, stating, "Going forward, I will take the restoration of the competitiveness of the DX Division and the creation of a new growth trajectory even more seriously."

President Noh stated, "I believe that many of you have felt alienated, deprived, disappointed, and let down by the recent wage negotiations and their outcomes," expressing these sentiments.

Noh Tae-moon, President and CEO of Samsung Electronics, is delivering a greeting at the Samsung Electronics DX Division's '2026 Win-Win Cooperation Day' held at the DoubleTree by Hilton Seoul Pangyo in Seongnam, Gyeonggi Province on March 27. Photo by Yonhap News.

Employees of the DX Division have taken action, claiming that the Samsung Electronics union failed to reflect their opinions during the wage negotiations. The Samsung Electronics Labor Union Companion (Donghaeng Union), comprised of employees from the non-semiconductor divisions, filed for an injunction to halt the voting procedures on the tentative agreement at Suwon District Court the previous day. The Donghaeng Union is also considering not only the injunction to stop the vote but also an injunction to suspend the effectiveness of the vote, a lawsuit to confirm the invalidity of the vote, and claims of violation of the duty of fair representation.

President Noh explained, "As the head of the division, I feel regret and responsibility for the situation where differences in the business environment and market conditions have led to different outcomes for each division. I am gravely aware of the current reality faced by the DX Division," and added, "We are confronting a difficult business situation amid global demand uncertainty, increased costs and expenses, and increasingly fierce competition."

He further stated, "Nevertheless, it is because each of you has steadfastly fulfilled your roles that the DX Division has come this far, and I am certain that we have the strength to rebuild our competitiveness. What we need right now is to clearly face the current situation and to find a breakthrough for the DX Division."

President Noh said that he would personally examine what needs to be changed in each business area, where more bold focus is required, and what is most urgently needed on the ground. He also mentioned plans to review the cost structure, business operations, product competitiveness, and implementation system to lay the foundation for mid- to long-term growth.

In conclusion, he stated, "Although the situation is difficult, I believe the DX Division can succeed once again. I will take the lead so that this belief is not just words," and added, "I will ensure that your efforts and dedication are tangibly recognized in achievements and a sense of pride."

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