Minority Shareholder Group Threatens Legal Action Against Samsung Electronics Management and Union

With the Samsung Electronics union's general strike imminent, a minority shareholder group has announced its intention to pursue legal action concerning wage negotiations and industrial actions such as strikes between the company and the union. In a press release, the minority shareholder group, identified as 'Korea Shareholder Movement Headquarters,' outlined its legal response plans targeting the joint struggle headquarters, which includes the Samsung Electronics board of directors, management, and the National Samsung Electronics Labor Union. This move aims to protect shareholder rights and could influence future labor-management relations.

The shareholder group contends that the union's demand to codify 'uniform payment of 15% of operating profit as performance bonuses' violates the 'principle of capital maintenance,' a mandatory provision under the Commercial Act. The shareholder group further stated that it would take legal action against management for breach of duty of loyalty to directors and criminal breach of trust if the management agrees to the union's demands. The shareholder group has labeled the union's strike as an 'illegal strike' and announced plans to seek damages.

Shareholders plan to gather proxy votes through the shareholder action platform 'ACT' starting from the 21st and form a group of plaintiffs.