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Labor Ministry Says Honam Semiconductor Project Not Subject to Collective Bargaining, Refuting Samsung Union's Claim

Yoo Younggyu

Published : Jul 14, 2026 6:56 AM


▲ Ministry of Employment and Labor

The Ministry of Employment and Labor stated on July 13 that the Honam semiconductor mega-project, which the Samsung Electronics labor union intends to include as an agenda item for next year's collective bargaining, does not fall under the scope of collective bargaining or labor disputes as defined by the revised Trade Union and Labor Relations Adjustment Act (also known as the Yellow Envelope Act).

In a press explanatory statement released that day, the ministry stated, "Decisions regarding business management, such as corporate investments and factory expansions, are difficult to view as having a direct and substantial impact on working conditions."

The ministry emphasized, "The guidelines on the interpretation of the revised Trade Union and Labor Relations Adjustment Act prepared by the government also explain that business management decisions—such as corporate investments, mergers, splits, and transfers—are not subjects for bargaining because they are difficult to view as having a direct and substantial impact on working conditions."

The ministry further explained, "However, if the implementation or realization of such business management decisions leads to direct and substantial changes in working conditions, matters related to those specific working conditions may become subjects for bargaining."

The Samsung Electronics branch of the Samsung Group's supra-corporate labor union, the largest union at the company, issued a statement earlier that day, saying, "As this is a project that could affect the workplaces and treatment of tens of thousands of employees, we will address matters related to the Honam semiconductor mega-project in the 2027 collective bargaining."

The union argued, "Under the Yellow Envelope Act legislated by the government and the ruling party, business decisions that affect the working conditions of union members have also become subjects for collective bargaining."

(Photo: Yonhap News TV, Yonhap News)