More than 47,000 employees of Samsung Electronics are set to walk out on Thursday after wage negotiations with the company’s union collapsed. The dispute centers on the company’s performance‑based bonus scheme, with union officials demanding a 15% share of operating profit, the removal of payout caps and a formalized bonus structure.

Negotiations stalled after the union accepted a mediation proposal from the National Labor Relations Commission, but Samsung rejected the offer, citing concerns that unmodified demands could undermine core management principles. The union’s spokesperson, Choi Seung‑ho, said the company had requested additional time, yet no decision had been reached, leading to the impasse.

The walkout is expected to be limited by a court order that prohibits interference with safety‑critical facilities or obstruction of production, protecting semiconductor wafer manufacturing. Samsung maintains it will continue dialogue and insists that no strike should occur.

South Korean authorities, including President Lee Jae Myung and Prime Minister Kim Min‑seok, urged both parties to reach a settlement. Kim warned that emergency measures could be invoked to halt the strike if it escalated.

The planned strike has already impacted Samsung’s share price, with the chip giant’s stocks falling about 3% as investors react to the uncertainty.