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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] A South Korean shareholder advocacy group has warned it will pursue legal action against union members if an anticipated strike at Samsung Electronics results in damage to key corporate assets.
According to industry sources on May 5, the Korea Shareholder Activism Coalition released a public statement urging the withdrawal of the planned general strike by the Samsung Electronics labor union, which is set to begin on May 21.
The group characterized the strike as a “self-destructive act” that could undermine corporate value. It stated that if an illegal strike leads to damage of critical assets, shareholders would jointly file compensation claims against all participating union members based on third-party rights infringement.
The warning also extended to company management. The group said that even if the strike does not materialize, executives could face shareholder derivative lawsuits under commercial law if they agree to what it described as “unjustified” performance-based compensation tied mechanically to operating profit in order to avoid short-term disruption.
In addition, the group said it would pursue restitution claims against union members if any “unfair benefits” are obtained through negotiations.
Regarding compensation structure, the organization called for adopting global-standard metrics such as Economic Value Added (EVA), rather than linking bonuses directly to operating profit.
The group further emphasized that Samsung Electronics’ performance reflects not only internal efforts but also broader national support and contributions from suppliers. It urged lawmakers to initiate public discussions on a more balanced distribution framework that allows profits to circulate through dividends and national infrastructure investment.
The Korea Shareholder Activism Coalition held a public rally on May 4, calling for the withdrawal of the strike and reforms to the bonus calculation system.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
