[Edaily Reporter JAEMIN SONG ] “What we want is not ‘voluntary retirement’ but ‘voluntary continued employment.’ Please allow us to work here for the long term, believing that the company will thrive even five or ten years from now.”

On the afternoon of the 21st, in front of the SamsungElectronics Seocho Building in Seocho-gu, Seoul. Amid gloomy weather, SamsungElectronics employees dressed in matching black attire began gathering one by one. On the main stage, alongside an image of a funeral wreath reading “In Memory of the Late SamsungElectronics DX Division—May They Rest in Peace,” banners were displayed reading “Chairman Jay Y. Lee, please listen to the voices of DX employees” and “Is this a deliberate loss to cut staff? Management must provide an immediate explanation.”

The SamsungElectronics Labor Union Donghaeng (Donghaeng Union), composed primarily of employees from the finished products (DX) division, held a rally condemning management at 3:30 p.m. that day. Following a rally last month at the Suwon campus in Gyeonggi Province—which the union estimated drew 7,000 participants—the group moved the venue to the Seocho headquarters, where management is based, about a month later.

As of 5:30 p.m., the union estimated attendance at over 3,500 (compared to management’s estimate of 1,800). As of this morning, the Donghaeng Union had 30,554 members, accounting for 62.3% of the DX Division’s total workforce of 49,080.

Around 3:50 p.m., rally participants marched around the Seocho headquarters chanting, “Same Company, Same Rights.” Leading the march was a union member holding an image depicting a memorial portrait of SamsungElectronics’ DX Division, followed by a line of members carrying signs featuring the company’s flagship products—such as TVs, washing machines, vacuum cleaners, and refrigerators—styled to look like memorial portraits.

They repeatedly chanted, “Park Hak-kyu, resign!” “Jeong Hyun-ho, resign!” “Take responsibility for management failures!” and “Stop the layoffs!” The picket signs bore the slogan, “Employees face voluntary resignations; executives live the high life.”

Traffic congestion ensued as some lanes around Gangnam Station and the Seocho headquarters were closed off for the march. Buses and cars honked their horns, and citizens waiting at bus stops for delayed buses experienced inconvenience. One citizen pushing a stroller even had to take a detour to avoid the closed-off section.

“1,000 shares aren’t the real issue”… Labor and management disagree on compensation principles

At the main rally, which began around 5:40 p.m., Kim Bo-ra, a member of the Donghaeng Labor Union, said, “We are not speaking out because we want the company to go under or to get a few extra pennies.” She added, “Don’t make employees worry about when they’ll have to leave; let them dream about how long they can do their jobs well.”

Union member Lee Seo-jun emphasized, “My heart sank when my daughter asked, ‘Is Dad at DS?’” He added, “Just because we’re in different divisions doesn’t mean the value of the sweat we’ve shed is any different. We are all employees of SamsungElectronics—neither DS nor DX.”

Son Jong-hyun, acting chair of the Audit Committee for the Donghaeng Union, shouted, “Seocho, answer us. Next is Hannam,” signaling further action. Hannam-dong is the location of SamsungElectronics Chairman Jay Y. Lee’s residence. The union also stated, “We will continue our actions until the company answers what the future of DX is and who will take responsibility for the current results.”

The rally stems from the compensation disparity between the Semiconductor (DS) division and the DX division. Last May, SamsungElectronics’ management and labor agreed to grant DX division employees company stock worth 6 million won per person. However, the introduction of a new special management performance bonus linked to operating profit for the DS division sparked growing backlash among DX employees.

The Donghaeng Union is demanding compensation of approximately 1,000 shares of company stock per employee, arguing that this reflects the contribution DX has made in the past by channeling its profits into semiconductor investments and strengthening the company’s overall competitiveness. However, the union clarified, “The 1,000 shares are not a fixed amount but a benchmark for negotiation,” adding, “If the company presents objective criteria for calculating contributions, we can jointly verify the scale and method of payment.”

In the long term, the union is calling for the “One Samsung Compensation Model,” under which a certain percentage of the company’s total operating profit is first set aside as a common fund to be distributed to all employees, followed by additional performance-based bonuses based on each business division’s results. The Donghaeng Union explained, “This is not about DX unilaterally sharing DS’s profits, but about creating a two-way system where the same principle applies even during future semiconductor downturns.”

SamsungElectronics maintains that, since the DX and DS divisions have independently managed their profits and loss accounts as well as compensation funds, it will uphold the existing principle of rewarding employees based on each division’s performance. Given that the DX Division posted an operating loss of 800 billion won in the second quarter of this year due to cost pressures stemming from rising memory prices, some argue that large-scale additional bonuses could place a burden on the company and its shareholders. The union countered, stating that the cause of the deficit—which occurred despite increased product sales—should not be blamed on employees, and that management, which made decisions regarding supply chain management and pricing policies, must provide a responsible explanation.

Controversy also persisted over the manner in which the rally was conducted. Some observers argue that, given the wage negotiations had already been settled and the procedures to secure the right to strike had not been followed, the fact that a large number of employees used their annual leave and “D-DAY” simultaneously could be viewed as a de facto collective refusal to provide labor. The union countered that, since it was a voluntary rally held on a non-working day recognized by the company, it did not constitute a labor dispute.

There is also an assessment that the turnout fell short of what would be expected for a majority union. The union’s estimated attendance of 3,500 represents 7.1% of the DX division’s total workforce of 49,080 and 11.5% of the 30,554 members of the Donghaeng Union. Although the turnout exceeded the initial estimate of 3,000, it was only half the 7,000 attendees at last month’s Suwon rally. Consequently, the rally—which was intended to demonstrate a large-scale presence at the Seocho headquarters—is viewed as having fallen somewhat short in terms of turnout.