Samsung Electronics executives and labor representatives pose for a photo with Labor Minister Kim Young-hoon after reaching a tentative wage-related deal at the Gyeonggi Regional Employment and Labor Office in Suwon, Gyeonggi Province on May 20, 2026. From left in the front row, Yeo Myung-gu, head of the electronics giant's DS (Device Solutions) team, union chief Choi Seung-ho, and Kim. Yonhap
Relief over the suspension of the planned strike fueled a sharp rally in Samsung Electronics shares, which jumped 6.43 percent to 293,750 won as of 9:33 a.m., helping lift the benchmark KOSPI 5.42 percent higher to 7,599.39.
Investor sentiment improved sharply after the National Samsung Electronics Union announced that its planned May 21-June 7 general strike would be suspended "until further notice" pending a membership vote on the tentative 2026 wage agreement scheduled through May 27.
Samsung Electronics, which accounts for roughly one-fifth of the KOSPI by market capitalization, has been one of the market's biggest drivers during the AI-fueled semiconductor rally.
The labor dispute had centered on bonus structures, compensation for employees in loss-making divisions and the removal of caps on performance-based incentives.
Under the tentative agreement signed late Wednesday at the Gyeonggi District Employment and Labor Office in Suwon, Samsung Electronics and the union agreed to separate bonuses into OPI (Overall Performance Incentive) payments and a special management incentive program for the semiconductor DS division.
The DS division's special incentive pool was set at 10.5 percent of agreed business performance and, notably, will not be capped — one of the union’s key demands during negotiations.
Under the agreement, 40 percent of the incentive pool will be distributed across the semiconductor division, while the remaining 60 percent will be allocated by individual business units.
The DS incentives will be paid entirely in Samsung Electronics shares after tax.
Employees will be allowed to sell one-third immediately, while the remaining shares will be locked up for one and two years, respectively.
The two sides also agreed to postpone penalties for loss-making divisions until next year, while setting a 10-year validity period for the DS special incentive framework subject to minimum operating profit conditions.
They further agreed to a 6.2 percent wage increase, including a 4.1 percent base salary raise and a 2.1 percent performance-based increase. Employees in the DX division will receive company shares worth 6 million won.
The tentative agreement will be finalized following the union membership vote on the 27th.
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