SEOUL, May 21 (Reuters) – Samsung Electronics’ shares rose as much as 6.5% in morning trade on \u200cThursday after the tech giant and its \u200cSouth Korean union reached a tentative pay deal, potentially averting a \u200bstrike that had threatened to hit the economy and undermine global chip supply chains.<\/p>\n
The union said the planned 18-day strike by nearly 48,000 members would be suspended \u200cwhile the tentative 11th-hour \u2060deal is put to a vote between May 22 and 27.<\/p>\n
The benchmark KOSPI was \u2060up 5.3% as of 0030 GMT.<\/p>\n
Ryu Young-ho, a senior analyst at NH Investment & Securities, said investors were relieved \u200bthat uncertainty \u200bsurrounding the prospect of \u200ba strike had eased.<\/p>\n
Still, \u200cRyu said the agreement was not entirely positive for investors as Samsung would likely need to set aside provisions tied to higher labour costs, which could weigh on operating profit.<\/p>\n
The company’s proposal of paying performance \u200cbonuses in company stock rather \u200bthan cash appeared to reflect Samsung \u200bmanagement’s preference, as \u200bstock-based compensation could lower the immediate financial \u200cburden on the company, said \u200bRyu.<\/p>\n
The two \u200bsides had been at odds over how performance bonuses would be distributed between the conglomerate’s hugely \u200bprofitable memory business \u200cand loss-making logic chip businesses, Reuters has previously \u200breported.<\/p>\n
(Reporting by Heekyong Yang, Heejin Kim and \u200bCynthia Kim;Editing by Ed Davies)<\/p>\n","protected":false},"excerpt":{"rendered":"SEOUL, May 21 (Reuters) – Samsung Electronics’ shares rose as much as 6.5% in morning trade on \u200cThursday…\n","protected":false},"author":2,"featured_media":26955,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[2464,18056,127,276,1484,808],"class_list":["post-26954","post","type-post","status-publish","format-standard","has-post-thumbnail","category-samsung-electronics","tag-performance-bonuses","tag-ryu-young-ho","tag-samsung","tag-samsung-electronics","tag-south-korean","tag-strike"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/26954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=26954"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/26954\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/26955"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=26954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=26954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=26954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}