Bond.az – Samsung Electronics shares rose on Monday after South Korea’s government stepped in to help avert a looming strike at the company’s memory chip operations.
Samsung shares closed 3.9% higher to 281,000 won, while the KOSPI index added just 0.3%.
Samsung and its South Korean labor union kicked off a new round of talks on Monday, with the government mediating. National Labor Relations Commission Chairman Park Soo-geun said talks would continue.
South Korea’s President Lee Jae Myung said management rights should be respected as much as labor rights. Prime Minister Kim Min-seok noted a strike would cause unprecedented economic damage.
A South Korean court threatened to fine the union 100 million won per day if it fails to comply with no-strike orders.
Workers at Samsung’s chipmaking unit were set to strike from May 21 after talks over compensation failed. Workers demand removal of bonus cap and greater share of AI profits.
Samsung is South Korea’s largest employer and company. Its value surged over the past year due to AI-driven demand for memory chips.
