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Samsung Electronics and its largest union have reached a last-minute wage agreement, averting a strike that could have damaged South Korea's economy and disrupted the global chip supply chain. The deal, announced on May 14, 2026, ends tense negotiations and ensures stable chip supplies for global markets.
South Korea’s benchmark KOSPI index surged over 8% after Samsung Electronics and its union reached a tentative deal to prevent an 18-day strike by 48,000 workers. Shares of Samsung and rival SK Hynix jumped sharply, while Nvidia’s record AI-driven profits also lifted sentiment. The deal, which still requires union member approval, would give workers 10.5% of the company’s operating profit.
Nearly 50,000 Samsung Electronics workers (38% of the workforce) are set to begin an 18-day strike on Thursday, mainly from the chip division, over bonus policy disputes. The strike, the largest in Samsung's history, follows failed government-mediation and threatens South Korea's economy and global semiconductor supply chains. The government may invoke emergency arbitration if it deems the strike causes significant national economic harm.
