Small business owners urge Samsung union to cancel strike

May 19 (Asia Today) -- Small business owners gathered outside Samsung Electronics' Pyeongtaek semiconductor campus on Monday to urge the company's labor union to withdraw plans for a large-scale strike, warning that a production stoppage could severely damage surrounding local economies.

The protest was organized by Korea Federation of Micro Enterprise, which said the strike threat was fueling frustration among struggling merchants and contractors already burdened by rising costs and weak consumer demand.

"We are taking out loans to pay employee salaries and rent while facing the risk of bankruptcy," federation Chairman Song Chi-young said during a news conference. "Meanwhile, a powerful union enjoying some of the country's highest wages and benefits is threatening to strike over bonuses. It leaves small business owners feeling deep deprivation and despair."

The federation warned that disruptions to semiconductor production could trigger broader economic fallout across South Korea's supplier network and surrounding commercial districts.

Song said reduced chip output would directly affect small and midsize companies supplying semiconductor materials, parts and equipment, while also hurting restaurants, lodging businesses and retailers that depend on workers and contractors tied to Samsung facilities.

The group sharply criticized union demands including a performance bonus equivalent to 15% of operating profit and removal of bonus caps.

"For many small business owners who cannot even earn the equivalent of minimum wage, these demands feel like a nail driven into their hearts," Song said. "It is selfish for a large union to hold the broader economy hostage for its own interests."

Local merchants from Pyeongtaek, Hwaseong and Yongin - areas heavily connected to Samsung's operations - attended the protest and voiced concerns about worsening financial instability.

Lee Sang-baek, head of the Gyeonggi provincial small business federation, said southern Gyeonggi Province commercial districts were already struggling with rising rents, labor costs and electricity prices.

"The Pyeongtaek campus supports countless suppliers and local businesses including hotels, restaurants and retail shops," Lee said. "If operations there are paralyzed, the damage will fall directly on local small business owners."

Some merchants warned they could consider legal action if a prolonged strike causes economic losses.

Lim Yong-pil, head of the Pyeongtaek small business federation, said business owners may pursue collective lawsuits against the union if disruptions threaten their survival.

The federation called on the union to immediately withdraw the strike plan, halt what it described as extreme labor action and resume dialogue with management.

"A labor movement without coexistence and mutual survival cannot win public support," Song said. "We will continue speaking out to protect the livelihoods of South Korea's small business owners and the stability of the broader economy."

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260519010005377

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