After Samsung Electronics Chairman Lee Jae-yong (이재용) on May 16 appealed to the union to pull together as “one family” along with a public apology, Samsung Electronics management and its union decided to sit down again on May 18 for a second post-mediation session at the National Labor Relations Commission. With the last chance for mediation just 3 days before a strike begins, both sides are showing signs of stepping back.

Lee told reporters after returning to South Korea at the Seoul Gimpo Business Aviation Center in Seoul’s Gangseo district that he “sincerely apologises to customers worldwide for causing anxiety and concern due to internal company issues” and “bows his head in apology to our people.” He added: “To union members and the Samsung family, we are one body, one family,” and said it was time to “wisely join forces and move in one direction.” He also said: “I will take the harsh wind and rain, and I will take the blame for everything,” making clear that final responsibility rests with him. It was his first public apology since becoming chairman in October 2022, and his third public apology after the 2015 MERS outbreak and a 2020 apology over a no-union management stance.

After Lee’s appeal, both sides responded by stepping back. Management accepted the union’s demand and replaced the company’s chief negotiator from Vice President Kim Hyeong-ro to Yeo Myeong-gu, head of the People Team at the DS semiconductor division. The union accepted the company’s request to allow Kim to join the mediation without speaking to help with understanding during the talks. Choi Seung-ho (최승호), head of the Samsung Electronics chapter of the Samsung Group National Samsung Electronics Union, said of Lee’s remarks: “It may take time to restore trust, but I hope they will work from these negotiations so we can move forward together.” He also said in a union-management meeting before the post-mediation that “management apologised for damaging labor-management trust and said it would negotiate in good faith. I will also do my best.”

The second post-mediation is likely to be the last attempt at mediation before a strike. Dialogue stalled after the first post-mediation on May 11 to 12 ended without agreement, but Labour Minister Kim Young-hoon (김영훈) met both sides for 2 straight days on May 15 to 16 to set the table for talks again. National Labor Relations Commission Chairman Park Su-geun (박수근) is also expected to attend the mediation in person. With only 3 days left from May 18 until the planned strike date of May 21, there are expectations that further mediation would be physically difficult if this round also collapses. Lee was also reported to be adjusting his schedule after returning home to directly monitor the progress of negotiations.

The size of performance bonuses may leave room for compromise, but institutionalisation is expected to face last-minute friction.

The key issues are the size of the excess profit incentive (OPI) and how to institutionalise it. The union is demanding the removal of the cap and institutionalisation based on 15 percent of operating profit. Management has proposed 10 percent of operating profit or a choice tied to economic value added (EVA), while adding a newly created special compensation scheme without a cap. Observers say there is room for compromise on the funding ratio, but last-minute friction is expected over institutionalisation, which the union strongly demands, as both sides hold firm positions.

Internal rifts in the union remain another variable. Several hundred union members in the DX device experience division have begun procedures to seek a court injunction to halt negotiations, objecting to DS semiconductor-centred bargaining. The move challenges bargaining rights themselves, and analysis suggests it could have a bigger impact on momentum for a strike. The Suwon District Court is expected to decide by May 20 on the company’s earlier request for an injunction to ban illegal industrial action. If the injunction is granted, the National Samsung Electronics Union will face double legal risks. This week, as the May 18 post-mediation outcome and the court decision intersect, will be a practical turning point in the Samsung labor-management conflict.