Samsung Electronics bonus dispute as a glimpse of the future

The author is a professor emeritus of physics and astronomy and a former president of Seoul National University. Samsung Electronics narrowly avoided a strike after reaching a last-minute agreement with its labor union over performance bonuses. Policymakers and the public, who had worried about a disruption at a semiconductor plant central to Korea's industrial base, expressed relief. Because Samsung's memory chips are essential to the rapidly expanding AI industry, foreign media closely monitored the negotiations and quickly reported news of the settlement. It may have been the first time developments at a Korean company drew such intense global attention, reflecting the country's growing role as a major player in the world economy. Yet once the negotiations ended, broader questions quickly emerged, suggesting that the agreement was only a temporary compromise rather than a fundamental solution. One criticism came from shareholders. They argued that surplus corporate profits belong not to employees, who receive guaranteed wages regardless of corporate performance, but to shareholders who invested while bearing the risk of failure. From the perspective of capitalism, the argument carries some logic. Others questioned whether Samsung's massive profits were truly the result of the company's efforts alone. Over many years, the government supported the semiconductor industry through infrastructure investments such as roads and electricity, while also funding advanced work force training and national research and development programs. Some also argued that subcontractors providing high-quality services at low cost deserved a share of the gains. Critics countered that such issues should be addressed through taxation and corporate contracts, but many still sympathize with those concerns. The dispute began after forecasts suggested Samsung Electronics could post more than 300 trillion won ($200 billion) in operating profits this year due to global investment in AI infrastructure. That figure is more than 40 percent of Korea's national budget and is roughly five times Samsung's previous record operating profit. Employees naturally wanted a portion of the gains and demanded bonuses tied to operating profits, following models adopted by competitors. However, the potential payouts — reportedly as high as 600 million won for some semiconductor division employees — triggered broader concerns about fairness. Many questioned whether it was reasonable for workers at a single company to receive payouts that ordinary small-business employees could not earn even after a decade of work. Skepticism deepened because the profits did not stem from a dramatic technological breakthrough unique to Samsung, but rather from a favorable industrial cycle fueled by global AI demand. In many ways, the dispute may represent an early sign of future conflicts to come. The strike threat and its aftermath can be seen as a "future that arrived early," not a one-time event. As AI industries expand, economic cycles are likely to fluctuate more rapidly, while the winner-takes-all nature of the technology sector may concentrate enormous profits in a small number of companies. Today, global AI development is led by major technology firms, but many analysts predict that only a few dominant companies will ultimately survive. When competition narrows and markets become concentrated, an important question emerges: Will those firms distribute their profits fairly across society? Under current social norms and institutions, the answer may well be "no." The behavior of some technology leaders, including Elon Musk, suggests that the pursuit of immense wealth and influence often outweighs broader social concerns. That reality points toward the need for institutional reform. Existing systems were designed around economic structures and social conditions of the past. But the AI era is likely to transform society in ways fundamentally different from earlier industrial changes....