Samsung strike just got paused. Markets exhale.


Samsung and its labour union reached a preliminary pay deal today. The planned 18 day strike starting May 21 is now suspended pending a member vote.
Union members vote May 23 to May 28. If they approve the deal the strike is officially cancelled.
This matters more than most people realise.
50,000 workers were ready to walk out tomorrow. Apple and HP were already quietly calling alternative suppliers. JPMorgan estimated an 18 day strike would wipe 40 trillion won from Samsung's annual profit.
All of that risk just got pushed back by one tentative agreement.
SK Hynix and $Micron were the quiet winners of a Samsung strike. That trade just got less obvious.
Korean markets should breathe easier when they open tomorrow. Samsung stock has been under pressure for two weeks on strike fears alone.
But the deal is not done yet. Union members still have to vote. If they reject the tentative agreement the strike clock starts again.
Watch May 28.
Rest. #DYOR
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