Samsung union pushes chip bonus overhaul as shares drop 4%

Samsung Electronics’ union moved on Oct 22 to rewrite how bonuses are set in the company’s DS, or chip, division. Chosunbiz reported that 81% were in favor of a change.

The union backs easing the bonus penalty that falls on chip units running at a loss, according to Seoul Economic Daily. BusinessKorea reported that the union also wants relief from the gap in bonuses between units. No change to the rules has been announced.

Bonus terms after a 107 trillion won quarter

For an investor abroad, the dispute bears on labor costs and labor relations at a company now earning far more than a year ago. Samsung’s preliminary third-quarter operating profit was 107.4 trillion won (about US$81.1 billion). That was 20.01% above the second quarter and 782.5% above the same quarter of 2025. It was the highest in at least six quarters. Revenue was 195 trillion won (about US$147.3 billion), the company said in its Oct 8 filing.

The bonus push follows earlier friction. Pacific Tape reported on a widening union rift over 2027 pay talks last week.

Pay at memory makers also drew attention outside Korea the same day. Micron plans a quarterly bonus system, BusinessKorea reported. Focus Taiwan reported that union representatives at Micron’s Taoyuan site started a symbolic strike.

A steeper fall than the KOSPI

Samsung closed at 214,500 won (US$161.98) on Oct 22, down 4.03% from 223,500 won a session earlier. The KOSPI lost 3.52% to 5,533.77, and the TIGER 200 fund slid 3.41%. No report gave a reason for Samsung’s drop, and none tied it to the union news.

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The shares have lost 20.11% in won since Sep 30. In US dollars the decline is 18.39%. Over that span the won firmed from 1,352.8 to 1,324.2 per dollar.

Even after the slide, Samsung was worth about 1,254 trillion won (about US$947 billion). That made up 29.81% of the KOSPI 200’s total market value.

Earnings call on Oct 29

Samsung is scheduled to hold its third-quarter earnings conference call on Oct 29 at 10:00 KST.

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Information only, not investment advice.