South Korea’s stock market soars as Samsung union calls off planned strike
Summary
South Korea’s stock market rose sharply after Samsung Electronics and its union reached a last-minute agreement to stop a planned strike by 48,000 workers. This deal helped avoid a break in the supply of memory chips, important for technologies like artificial intelligence (AI), and boosted investor confidence alongside strong profits reported by US chip maker Nvidia.Key Facts
- Samsung Electronics and its union agreed to a tentative pay deal, preventing an 18-day strike by 48,000 employees.
- The South Korean KOSPI stock index rose more than 8% following the announcement.
- Samsung Electronics’ stock price increased by over 7.5%, while rival SK Hynix rose more than 11%.
- Other South Korean companies like Hyundai Motor and Kia also saw shares rise about 13%.
- Samsung makes the largest share of the world’s memory chips used in AI and had record profits recently.
- Samsung’s chip division profit grew nearly 50 times in the first quarter, reaching about $35 billion.
- The proposed pay deal gives union workers a claim to 10.5% of Samsung’s operating profits.
- Nvidia reported a record $58.3 billion profit in the last quarter, strengthening market optimism about AI.
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