Samsung Electronics' board chairman appealed for a resolution through sincere dialogue over a recently flaring labor-management conflict, warning of heavy economic damage and the possible loss of semiconductor competitiveness.

Shin Je-yoon (신제윤), chairman of Samsung Electronics' board, sent a message to employees via the company intranet on May 5. He expressed concern about the company’s recent situation and urged dialogue.

Shin said many citizens, as well as shareholders and customers, were deeply worried by the recent situation. He said he felt a heavy sense of responsibility as board chairman and was sorry for causing concern.

He cited the special nature of the semiconductor business and voiced concern that the situation could worsen. Shin said the semiconductor business, a core national industry, hinges on timing and customer trust. He stressed that if disruptions to development and production occur and delivery schedules are not met, the company could lose fundamental competitiveness, and there is a risk it could lose market dominance as customers defect to rivals.

He also warned of major economic repercussions. He said if the company’s value falls due to strike losses and customer defections, it would cause serious losses to shareholders, investors, employees and local communities. Shin said exports worth tens of billions of dollars would fall and tax revenue amounting to tens of trillion won would decline, and that the national economy would also be seriously affected as the exchange rate is pushed up and gross domestic product (GDP) shrinks.

Shin also called for labor-management harmony and the building of a constructive relationship. He said that for sustainable growth amid boundless competition, the time has come for all employees to join forces and resolve problems through sincere dialogue. He said they should work together so that the current conflict can become a foundation for building a more constructive labor-management relationship going forward.