Samsung Electronics Pledges 5 Trillion Won for Social Contributions Amid Bonus Criticism

Samsung Electronics has unveiled a substantial 5 trillion won social contribution plan spanning the next five years, encompassing initiatives like supplier support and talent cultivation. This move is widely interpreted as a direct response to growing public criticism that the company's substantial performance bonuses, particularly within its semiconductor division, were akin to an "exclusive feast" for its employees, especially during a period of record profits.

The company's announcement signals an effort to address societal demands for a broader distribution of its immense earnings, extending beyond its workforce to include subcontractors, vulnerable populations, and investments in future talent. A portion of the 5 trillion won fund is earmarked for establishing an internal industrial accident fund, while the majority will be allocated to various support projects and investments starting this year.

Specific areas under consideration for support include small and medium-sized suppliers, with potential for low-interest loans through a "win-win fund" and expanded support programs offering free training and consulting. The company is also exploring avenues to provide small credit loans to vulnerable groups and small business owners through corporate contributions, reminiscent of the "Miso Finance" program established during the Lee Myung-bak administration. The detailed execution plans will undergo review by an external oversight body, the Compliance Committee, and a board resolution.

This marks the first time Samsung Electronics has announced such a large-scale social contribution plan at the corporate level, excluding personal donations like the inheritance contributions from the late chairman Lee Kun-hee. Previously, the company's annual social contribution expenditure, as detailed in its sustainability reports, remained well below 1 trillion won, with figures around 400 billion won in 2022-2023 and 300 billion won in 2024. The "Future Technology Development Project," ongoing since 2013, has accumulated approximately 1.1 trillion won in support. The new plan distinguishes itself not only by its scale but also by its focus on direct corporate funding for supplier support, talent development, and expanded financial aid for the underprivileged.

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We deeply thank the public, shareholders, customers, and employees for their interest and support, and the government for its dedicated support efforts. We apologize once again for the concerns and worries we have caused. We will humbly reflect deeply on labor relations and overall management to ensure this never happens again.