Samsung's stock price declines, labor negotiations reach a deadlock

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Investing.com - Samsung Electronics (KS:005930) stock price declined on Tuesday, with investors closely watching the latest negotiations between the company and the union. Both sides are striving to avoid a strike that could impact the global semiconductor supply chain.

Samsung Electronics’ stock fell over 2% in trading on the Seoul stock market, closing at 279,500 won (Greenwich Mean Time 03:12), underperforming the overall market trend.

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On Tuesday, Samsung management and union representatives entered the second day of mediation talks under government-led efforts. The previous day, the two sides had over 11 hours of negotiations but still failed to reach a substantive breakthrough.

According to reports, the union, representing tens of thousands of employees, put forward several demands, including setting performance bonuses at 15% of operating profit, removing the bonus cap, and making formal commitments to the salary structure.

The union warned that if negotiations break down, a strike lasting 18 days will be launched starting May 21.

Amid this labor dispute, Samsung is benefiting from strong growth in demand for high-end storage chips in artificial intelligence applications. The company announced a significant jump in operating profit for the first quarter last month.

Samsung Electronics

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278,750.00

▼-6,750(-2.36%)

Real-time Data·11:34:10·KRW

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Samsung Board Chairman previously called on employees to resolve disputes through dialogue and warned that industrial action would harm the company’s competitiveness and negatively impact South Korea’s overall economy.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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