More than 47,000 Samsung Electronics workers are set to begin a strike after wage negotiations between the company and its union collapsed.

The dispute centers on performance-based bonuses, with the union demanding higher payouts and changes to the compensation system.

The breakdown in talks followed rejected mediation efforts and conflicting accounts between Samsung and union leaders over delays in decision-making.

Samsung warned that the union’s demands are excessive and insisted strikes should not proceed, while still expressing willingness to continue dialogue, CNBC has reported.

The strike has raised concerns in South Korea, where officials have urged a settlement and warned that emergency government intervention could be considered.