Samsung Electronics and its South Korean labor union failed to reach an agreement on wages and bonuses. Marathon negotiations mediated by the government ended in the early hours of May 13.
A planned 18-day strike will begin on May 21. This action threatens to disrupt the production of critical AI and other semiconductors.
The union demands an overhaul of the company's bonus scheme to increase transparency. Workers are specifically seeking changes to the calculation of excess profit incentives.
Samsung shares fell more than 2% during trading on May 12. The decline reflects investor concern over a potential production halt.