Expectation for Resolution of Bonus Gap with DS Division and Conflicts over AX Transition
Focus on Measures to Prevent Recurrence of Union Blacklist Incident

Samsung Electronics is set to hold a direct communication session for all executives and employees of its Device eXperience (DX) Division, which oversees finished product businesses such as home appliances, mobile, and TV, in an effort to ease growing internal tensions.


According to industry sources on September 27, Samsung Electronics plans to host a company-wide town hall meeting next month, to be presided over directly by President and CEO No Tae-moon, head of the DX Division. The company is said to have shared details of this plan at a recent closed-door management briefing for key business leaders and team managers.

Noh Taemoon, President and CEO of Samsung Electronics' DX Division, is speaking at a press conference in South Korea right after the 'Galaxy Unpacked 2026' event held in London, UK, in July. Photo by Yonhap News Agency

Noh Taemoon, President and CEO of Samsung Electronics' DX Division, is speaking at a press conference in South Korea right after the 'Galaxy Unpacked 2026' event held in London, UK, in July. Photo by Yonhap News Agency

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This town hall meeting is seen as a move by top management to directly address and resolve various complaints and conflicts that have been accumulating within the DX Division. Employees in the DX Division have raised concerns over the bonus (OPI) gap with the Device Solutions (DS) Division responsible for semiconductors, the implementation of emergency management measures in response to deteriorating performance, and increased work burden related to the company-wide shift to artificial intelligence (AX).


There is also interest in whether the company will issue an apology or announce measures to prevent recurrence in light of the recent incident, in which officials from the super-corporate trade union were referred to prosecution for allegedly creating and distributing a so-called "union blacklist" containing the employee numbers and union membership status of about 100,000 employees.


Meanwhile, the Samsung Electronics Labor Union Donghaeng—composed mainly of DX Division employees—has launched an indefinite sit-in protest in front of the company's Seocho headquarters and Chairman Lee Jae-yong’s residence in Yongsan District, Seoul. The Donghaeng union has criticized the distribution of tens of billions of won in long-term incentive (LTI) payments to executives even as company performance worsens. They are demanding the creation of a company-wide common bonus pool to balance out profit imbalances between the semiconductor and finished product businesses caused by different business cycles.



In contrast, Samsung Electronics management continues to adhere to the principle of separate bonus pools by division, with differentiated rewards according to each business unit’s performance. The company’s strategy is to significantly expand market share and find a breakthrough in overall performance by leveraging its superior technological competitiveness, especially at a time when rising memory semiconductor prices have increased cost pressures on the appliance and mobile sectors compared to competitors.


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