Samsung Electronics (005930.KS) Workers Approve Pay Deal, Shares Surge 6%

Unionized workers at Samsung Electronics approved a contentious bonus pay deal on May 27, 2026, with 74% of 62,616 voters backing the agreement, averting an 18-day strike at the world’s largest memory chip maker. Shares surged 6%, buoyed also by AI-driven chip sector investor frenzy. The government-mediated deal, ending a five-month dispute, primarily rewards workers in the memory chip division, where soaring AI-related profits will deliver some bonuses of around $416,000 this year. All chip workers will receive a regular cash bonus equal to 50% of annual salary, plus special bonuses from 10.5% of the chip division’s operating profit, paid in stock with a three-year vesting schedule. Payouts are contingent on Samsung achieving annual operating profit exceeding 200 trillion won from 2026 to 2028 and 100 trillion won from 2029 to 2035. Samsung’s annual profit is expected to hit a record 300 trillion won ($200 billion) this year, shattering the 58.9 trillion won record set in 2018. Workers in consumer electronics divisions will receive minimal bonuses, breeding internal discontent despite the windfall for chip staff. The resolution brings broad relief as Samsung accounts for roughly a quarter of South Korea’s exports.