Samsung Strike Threat Averted for Now, South Korean Stock Market Surges Over 6%

According to BlockBeats News on May 21st, the South Korean stock market surged significantly after Samsung Electronics reached a preliminary agreement with the union, resolving the strike threat faced by the world's largest memory chip maker.

The benchmark South Korean KOSPI index jumped as much as 6.4% on Thursday, with Samsung's stock price soaring nearly 7%. Its competitor, SK Hynix, surged by as much as 8.4%. After the futures soared, a South Korean trading platform temporarily halted program trading for the KOSPI and KOSDAQ.

Furthermore, chip-related stocks were boosted by better-than-expected earnings from NVIDIA. "The preliminary agreement between labor and management is seen as a positive development in terms of reducing uncertainty," said Ha SeokKeun, Chief Investment Officer at Eugene Asset Management. "In addition, NVIDIA's earnings call once again emphasized the exceptionally strong demand for AI-driven memory, especially high-bandwidth memory and advanced DRAM."