Samsung Heavy Industries has concluded its 2026 wage negotiations, becoming the first of South Korea’s three major shipbuilders to reach an agreement this year.
The Samsung Heavy Industries Workers Council said on 23 September 2026 that members had approved the tentative agreement in a ratification vote. The settlement followed more than 20 rounds of negotiations since the first formal meeting at the end of June.
Under the agreement, base pay will increase by a total of 5.2%, or KRW 131,786. This consists of a 4.5% increase of KRW 113,842 and a 0.7% regular salary increment.
The increase is 0.5 percentage points higher than an earlier proposal rejected by the Workers Council on 17 September 2026.
Employees will also receive KRW 7 million in incentive payments covering the wage settlement, labor-management cooperation and future competitiveness measures.
The performance bonus system will also be revised. The Outperformance Incentive, previously calculated using 20% of Economic Value Added, will instead be based on 10% of operating profit. The new method will apply to 2026 results, with payments scheduled for early next year.
The agreement also covers employment and employee benefits. Workers reaching mandatory retirement age and subsequently rehired on fixed-term contracts will be able to work for up to two additional years under a “1+1 year” arrangement.
The housing loan limit will increase to KRW 70 million, while employees completing 40 years of service will receive up to 15 days of paid leave. The company and workers also agreed to recruit new production employees next year.
Union members will receive an additional special day off under the agreement.
At the time of the settlement, wage negotiations at Hanwha Ocean and HD Hyundai Heavy Industries remained unresolved, with industrial action continuing at both shipbuilders.
