Korean stock KOSPI surges 8%, triggering a circuit breaker! Samsung rises 7.4% during trading hours, SK Hynix jumps 11.2%

South Korea's KOSPI Index surged by 8% today, soaring to 7,787 points, with both KOSPI and KOSDAQ simultaneously triggering buy-side sidecar circuit breakers. Samsung Electronics rose 7.4%, SK Hynix increased 11.2%, Hyundai Motor gained 12.5%, nearly the entire market turned green.
(Background recap: Court halts Samsung strike, imposing a 45k won daily fine: AI chip profits soar 48 times, Hynix picks up the slack)
(Additional background: Nvidia announced on Wednesday: $78 billion in revenue expected to set a record, options market pre-bought 10% volatility insurance)

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• Samsung strike countdown halts abruptly within an hour
• Nvidia's $81.6 billion revenue fuels the rally
• Frequently Asked Questions

The Korean stock market opened and was halted within minutes; KOSPI 200 futures surged past 5% and continued for over a minute, automatically triggering a five-minute buy-side pause mechanism. KOSDAQ nearly followed suit. Institutional net buying exceeded 2.4 trillion won in a single day, while foreign investors and retail traders were on the selling side.

Electronics and electrical stocks led the gains at 9.14%, transportation devices 7.83%, machinery 7.58%, with almost no red on the board except for food and beverages. In individual stocks, Hyundai Mobis soared 19.4%, SK Square +12.4%, Samsung Electro-Mechanics +11.9%, Kia +11.5%, Samsung Life +11.3%, with major blue-chip stocks all exploding.

Samsung strike countdown halts abruptly within an hour

The National Union of Samsung Electronics (NSEU) originally planned an 18-day nationwide strike from May 21 to June 7, involving 45k members, which would be the largest in semiconductor industry history. But about an hour before the strike began, labor and management reached a temporary agreement with the intervention of Minister of Labor and Employment Kim Young-hoon.

Core terms: an average salary increase of 6.2% by 2026; the semiconductor division (DS) will receive a special performance bonus calculated at 10.5% of operating profit, with no cap on payouts. Based on Q1 profits of the DS division, the per-person annual bonus for chip employees could reach about 600 million won (approximately 13.9 million TWD).

Samsung's union announced the suspension of strike actions, with a full member vote scheduled from 2 PM on May 22 to 10 AM on May 27.

Nvidia's $81.6 billion revenue fuels the rally

The main driver was Nvidia's post-market release of FY2027 Q1 financial results on May 20: revenue of $81.6 billion, up 85% year-over-year and 20% quarter-over-quarter, surpassing Wall Street consensus of $79.2 billion; earnings per share of $1.87 beat expectations of $1.77; data center revenue hit a record $75.2 billion; dividend payout was increased 25-fold. Q2 guidance was set at $91 billion, with no signs of slowing AI capital expenditure.

The effect immediately transmitted to Asian markets the next day at opening, with Samsung Electronics and SK Hynix accounting for over 42% of KOSPI's weight. Both are key suppliers of Nvidia's AI server HBM memory.

Frequently Asked Questions

Why did the Korean KOSPI surge 8% today?

Three catalysts ignited simultaneously: Samsung's 45k workers reached a salary agreement an hour before the strike, Nvidia's Q1 revenue of $81.6 billion exceeded expectations and broke records, plus falling oil prices and easing US Treasury yields. Institutional net buying exceeded 2.4 trillion won in a single day.

What are the details of Samsung Electronics' union's salary agreement?

An average salary increase of 6.2% by 2026; the semiconductor division will receive a special performance bonus calculated at 10.5% of operating profit, with no cap. Based on Q1 profits, the per-person annual bonus for chip employees could reach about 600 million won (approximately 13.9 million TWD).