Tensions are escalating between the management and the labor union of Samsung Biologics, as they have failed to find common ground for over half a year regarding wage hikes and personnel system reforms.

The management of Samsung Biologics maintains its stance to take strict measures against illegal and unlawful acts by the union.

In a message issued today (October 7) regarding the wage and collective bargaining negotiations, Samsung Biologics management emphasized, "We will respond strictly in accordance with principles against illegal and unlawful acts, such as unreasonable demands outside the law, unauthorized posting of promotional materials inside the company, personal attacks and defamation, and obstruction of business targeting clients."

Management expressed regret over the flyers posted by the union inside the company yesterday (October 6), which contained personal attacks and photographs directed at the chief executive officer.

Management stated, "Defamation and insulting disparagement that undermine a healthy negotiation culture cannot be justified under any circumstances."

It also noted, "Unpaid wages resulting from participation in strike actions or other labor disputes will not be compensated or reimbursed."

Following its notice of a three-week strike starting on October 26, the union has also put the brakes on the company's paid-in capital increase plan.

The union argues that the schedule for the paid-in capital increase should be put on hold, given that business uncertainties stemming from labor disputes are growing, including the three-week strike scheduled for October 26.

Park Jae-sung, head of the Samsung Biologics labor union, stated today, "As both the union leader and the head of the employee stock ownership association, I have requested the Korea Exchange and the Financial Supervisory Service to suspend and re-examine the subscription schedule for the paid-in capital increase."

Park explained, "We judged that proceeding with a paid-in capital increase in a situation of high uncertainty, where risks arising from labor disputes are not sufficiently explained, does not align with the purpose of the employee stock ownership association, which is 'asset formation for workers.'"

He added, "This request was made to protect the purpose of the employee stock ownership association and to secure time for general investors to fully recognize and assess the related risks. We have requested the suspension and re-examination of the subscription schedule so that the capital increase can proceed without greater damage once uncertainties are resolved."

Previously, Samsung Biologics decided to conduct a paid-in capital increase through a public offering of unsubscribed shares following allocation to existing shareholders, aiming to raise approximately 3 trillion won to acquire the Polypeptide Group.

According to the schedule, account transfers and over-the-counter trading of preemptive rights certificates will become available starting October 19, and on-the-counter trading will take place from October 26 to 30.

In the official document sent to financial authorities, the union pointed out that the start date of the second strike coincides with the start date of on-market trading.

The union stated, "Simply supplementing explanations afterward makes it difficult to reverse the judgments of investors who have already acquired or disposed of their rights. Securing time to review the latest business risks, funding plans, and necessary corrections or changes must be considered alongside the subscription schedule."

In addition, the union requested financial authorities to examine the reason behind a 335.9 billion won discrepancy between the total investment amount and the funding sum in the funding table for the company's Plant 6.