Samsung Electronics proposed unconditional talks to its largest labor union to avert a strike starting May 21. The union rejected the proposal and will not resume dialogue until the strike concludes on June 7. Disagreements over wages and performance-based bonuses caused the initial breakdown in negotiations.
Samsung shares fell 2% in morning trade, underperforming the benchmark KOSPI index. JP Morgan warned the industrial action could lead to substantial operating profit losses. South Korean officials expressed concern that a prolonged strike threatens national economic growth and exports.