Samsung Electronics Co Ltd shares jumped strongly on Thursday after the company and its largest employee union reached a last-minute, tentative pay agreement that forestalled a strike scheduled to begin that day.
The stock advanced more than 6% to 294,000 won, helping to drive a near 6% rise in the KOSPI index. At the time, Samsung was trading close to a record high.
Late on Wednesday the union announced it would suspend planned strike action just hours before the action was due to start on Thursday. The pause followed the report of a provisional pay deal with Samsung, though the union’s roughly 48,000 members are still expected to vote on the agreement.
Local media reported the membership vote is scheduled to take place between May 22 and May 27. The talks that produced the tentative pact had been fractious in recent weeks, with negotiations breaking down on multiple occasions and government-led mediation entering the process earlier in the week.
Union negotiators had sought a larger share of profits from Samsung’s memory chip operations, pointing to a substantial windfall tied to demand driven by artificial intelligence. Dissatisfaction among employees was also linked to a perceived pay gap with smaller rival SK Hynix, which experienced a similar AI-driven revenue boost over the past year.
Shares of SK Hynix also rose, gaining nearly 5% on Thursday.
Market participants in the chip sector were further encouraged by strong quarterly results from major customer NVIDIA Corporation, which signaled that demand linked to AI workloads was likely to remain robust in coming quarters. That backdrop helped lift sentiment across Samsung and its peer group.
Market context and next steps
The agreement announced late Wednesday removed an immediate strike threat that had weighed on investor sentiment and stock performance. However, the arrangement remains provisional until union members cast their votes later in May. Negotiations had repeatedly stalled in recent weeks, and the intervention of government mediators underscores the contentious nature of the discussions.
Until the union vote is completed, uncertainty remains about the long-term labor settlement and whether further talks will be required.