Samsung Electronics is moving to create a task force for its Device Experience (DX) Division after labor-management talks on August 10 focused on morale, compensation and accountability, as a widening performance gap with the Device Solutions (DS) semiconductor unit fuels internal discontent. Management and the Samsung Electronics Labor Union (SECU) discussed setting up a "DX TF" that would meet weekly or every two weeks with three representatives from each side and also help prepare for 2027 wage negotiations. The union said the talks should begin at the working level and later include decision-makers with authority. The debate comes as Samsung reported record second-quarter revenue and operating profit, with the DS Division contributing most of the earnings, while the DX Division remains under emergency management and faces pressure from higher component costs and weaker demand. Management said DX is not in a "structurally loss-making" position, arguing that the Mobile Experience (MX) business is profitable in flagship lines and that losses on some entry-level models in certain countries reflect a market-share strategy intended to support the smartphone ecosystem and generate stable long-term profits. Samsung also said the Long-Term Incentive (LTI, compensation tied to longer-term goals) challenged by the union was not based only on 2026 performance, but on shareholder value enhancement and mid-to-long-term management performance over the 2020-2022 period. Both sides agreed to widen communication channels, with management acknowledging past shortcomings and promising clearer responses to consultation requests, official correspondence and formal opportunities such as CEO town hall meetings. The two sides did not resolve differences over additional DX compensation. Management said the 2026 wage agreement had already been finalized and should be honored, adding that DX business conditions make the union's demands difficult to accommodate. It also said an immediate answer would be difficult before DS Division compensation is finalized and proposed continuing discussions through regular labor-management meetings. Pressure has also increased from the Donghaeng Union, whose membership is concentrated in DX and which plans an August 21 rally outside Samsung Electronics' Seocho office in Seoul. The union intends to demand, among other things, "1,000 treasury shares per DX Division employee." Based on Samsung's July 8 distribution of 1,083,434 treasury shares to 49,345 employees and the August 7 closing price of 231,000 won per share, granting 1,000 shares to the same number of employees would require 49,345,000 shares worth about 11.4 trillion won, or about $8.1 billion, more than 45 times the amount actually distributed. Industry observers say such a payout could strain Samsung's finances, weaken the predictability of its compensation framework and weigh on shareholder value, while critics say the demand conflicts with the company's principle of reflecting divisional performance. Donghaeng's membership rose from around 2,300 in early May to 30,063 as of August 3, prompting speculation in the industry that it is pressing for unrealistic compensation demands to expand its membership base.