Samsung Chair Jay Y. Lee Apologizes to Public, Global Customers, Urges End to Union Dispute

Samsung Electronics Chairman Jay Y. Lee apologized to the South Korean public and customers worldwide, saying internal problems at the company had caused anxiety and damaged trust. He also called for a swift resolution to the company's labor dispute, saying it was time to move in one direction.

Lee made the remarks to reporters on May 16 after returning from an overseas trip via the Seoul Gimpo Business Aviation Center.

"I sincerely apologize to the public and customers around the world for causing anxiety and undermining trust because of problems inside the company," Lee said.

He also offered a deep apology to the South Korean public, whom he said had continued to support, love and challenge Samsung.

Addressing employees, Lee described Samsung as "one body, one family" and said the company must now move forward wisely in one direction. He said he would bear the brunt of the storm and take the blame himself, adding that he would do his best to restore pride in Samsung's strength.

Lee also thanked the government and other officials working to resolve the dispute. He again apologized to customers and the public for causing concern.

Lee is reported to have cut short part of his overseas itinerary to return home that day. His comments came as Samsung Electronics' labor dispute appeared to be heading toward an unprecedented rupture.

Since December 2025, Samsung Electronics' union has demanded that 15% of operating profit be formally earmarked for performance bonuses and that the cap on such bonuses be abolished. Management has pushed back, saying a rigid compensation system unrelated to business performance could weaken funding for future investment.

Even after the National Labor Relations Commission halted mediation in March, the two sides failed to narrow their differences. They returned to the table on May 11 after government persuasion led to follow-up mediation talks, but those negotiations also broke down.

Executives from the company's Device Solutions, or DS, semiconductor division visited the union and appealed for talks to resume, five days before a general strike scheduled for May 21.

The union, however, has not backed down. In a meeting with Vice Chairman Jeon Young-hyun, union chief Choi said management had "no credibility at all" and that talks could resume only if the company first agreed to institutionalize bonus transparency and scrap the bonus cap.

Choi said on May 16 that negotiations could take place at any time after June 7, when the strike ends. The comment reaffirmed that the union has no intention of withdrawing its planned 18-day general strike without formalizing the bonus system.

The government is closely monitoring the possibility of a walkout and has begun emergency mediation.

According to industry officials, Labor Minister Kim Young-hoon met Samsung Electronics management on May 16 to mediate the dispute. Earlier, he had met the union and heard its demands.

The union said that for talks with management to resume, Samsung must replace Kim Hyung-ro, the company's vice president and chief management negotiator, and show a substantive change in its position. Kim is reported to have conveyed those demands in his meeting with management.

Lee Kyu-yeon, senior presidential secretary for public relations and communication at South Korea's presidential office, said at a briefing on May 15 that Samsung Electronics plays an enormous role in the national economy and that he hoped a strike would never happen.

Asked whether the government would invoke emergency arbitration if the strike goes ahead, Lee said it was not yet at a stage where any decision could be made.

Won Jong-hwan, Hankyung.com reporter won0403@hankyung.com

Kang Hae-ryeong, Hankyung.com reporter hr.kang@hankyung.com