Korea's first-quarter manufacturing output rose just 0.2 percent when semiconductors are excluded. All six major economic indicators including production, consumption and investment posted their best performance in 11 quarters, and real gross domestic product grew 1.7 percent, but the economy is virtually flat without chips. The services sector tells a similar story. The chip boom fueled a stock market rally that sharply boosted output in financial and insurance services, but lodging and food services recorded their steepest decline in six quarters. This is evidence that chip-driven growth is failing to spread to employment and domestic demand, deepening the K-shaped polarization of the economy.
Against this backdrop, Samsung Electronics (005930.KS) union's notice of a strike over performance bonuses is far removed from public sentiment. The gains from semiconductors are concentrated among a small group of insiders, widening the gap between industries and social classes. The same logic explains why non-semiconductor division members have been leaving the Samsung Electronics union in droves. Yet the union is ignoring public opinion that its bonus demands are excessive, as well as President Lee Jae-myung's warning against "union selfishness." Citigroup Global Markets has gone so far as to cut its target price for Samsung Electronics, citing union risk. Samsung Biologics (207940.KS) has also been compounding losses with a full-scale strike now in its third day.
At a Labor Day ceremony, President Lee said, "We can move toward a better future only by breaking the outdated dichotomy that being pro-labor means being anti-business, and being pro-business means being anti-labor." He emphasized a cooperative labor-management relationship, saying, "There are no workers without companies, and no companies without workers." If unions cling to strike-first tactics even as labor-management relations are visibly changing, both sides will not escape a vicious cycle of conflict. The labor community must take to heart the criticism that a labor movement centered on large-company unions leads to the marginalization of platform workers, non-regular employees and young workers. The government, too, needs to examine closely whether labor policies that prioritize worker protection are amplifying social conflict and corporate burdens. Complaints that the vague and overly expansive Yellow Envelope Act and the presumed-worker rule are fueling confusion on the ground are not merely grumbling.
It is time to break the outdated dichotomous framework. Labor and management must seek solutions of coexistence and mutual prosperity based on common sense and reason. Excessive distribution that ignores the future can undermine competitiveness. The fruits of semiconductor investment cannot be the exclusive property of a specific group. Any argument that ignores the fact that these are shared gains — built on infrastructure funded by taxpayers and involving partner companies and shareholders — will struggle to persuade.
