The board chairman of Samsung Electronics has urged unionised workers to resolve their ongoing pay dispute with management, cautioning that a planned strike could harm both employees and investors. He also warned that such action could have wider consequences for the South Korean economy.

In an internal memo shared with employees on Tuesday, Shin Je-yoon expressed concern over the company’s future if disruptions take place. He said he was "worried about losing market leadership amid fleeing customers and falling competitiveness" if strikes interfere with production and delivery schedules. His statement was shared through an official Samsung communication.

He highlighted that any disruption at the chipmaker, which is South Korea’s largest company by revenue, could have serious ripple effects. According to him, halted operations could lead to capital outflows, reduced national tax income, and a weakening of the Korean won. These risks underline the broader economic importance of the company beyond its business operations.

Shin stressed the need for dialogue to resolve the issue. "It's time to resolve the problem through sincere dialogue," he said, urging both sides to come to an agreement without escalating tensions further.

The warning comes at a time when unions at Samsung have been pushing for a higher bonus. They have threatened industrial action if their demands are not met. As part of their plan, workers have proposed an 18-day strike starting from May 21. The situation remains tense as both management and unions prepare for possible developments in the coming days.

The outcome of these negotiations will be closely watched, given Samsung’s role in the global semiconductor market and its impact on South Korea’s economy.