Samsung Workers Begin 18-Day Strike Over Bonus Dispute

Analysts estimate the strike could reduce Samsung's operating profit by 12 to 17.6 billion euros. JPMorgan analysts warned the financial impact could reach up to 17.7 billion euros if the strike continues for the full 18 days.

Financial Impact

The Bank of Korea has expressed concerns that the strike could shave 0.5 percentage points off South Korea's economic growth in 2026. This is particularly significant as semiconductor exports account for 35% of the country's total exports.

While the strike is underway, Samsung must maintain essential operations at some plants. A court ruling requires about 7,100 workers to remain on duty to keep 24-hour production lines running.

Despite the strike, Samsung's stock price initially fell by 5% but later recovered, closing up 0.5%. Analysts have raised their target prices for Samsung shares to between 189 and 206 euros.

Market Reactions

The South Korean government has the authority to stop the strike for up to 30 days through an emergency decree. However, no such action has been taken yet.

The strike threatens to disrupt the global supply of memory chips, as Samsung and SK Hynix dominate this market. Any prolonged disruption could have ripple effects across the tech industry.