(Yonhap)
Samsung Electronics Co. shares jumped sharply on Thursday morning, rising more than 6 percent after the company reached a tentative wage agreement with its labor union, easing strike concerns.
Samsung Electronics shares were trading at 293,500 won ($195) as of 9:03 a.m., up 6.34 percent from the previous session. At one point during the session, the stock climbed as high as 294,000 won.
The stock had fallen as much as 4.36 percent intraday on Wednesday when news of a potential union strike emerged. However, it later recovered after the presidential office urged both labor and management to continue negotiations.
(POOL)
On Wednesday, Samsung Electronics and its union signed a tentative 2026 wage agreement just about an hour before a planned general strike. If approved in a union vote, the deal is expected to end more than five months of labor-management conflict that began in December 2025.
Market expectations had previously estimated that a full-scale strike could cause up to 100 trillion won in economic damage. The sudden agreement triggered strong buying sentiment driven by relief.
Construction-related stocks, in the meantime, also rose on Thursday morning amid optimism over potential de-escalation in Middle East tensions.
Samsung E&A Co. shares rose 6.12 percent as of 9:03 a.m., while Samsung C&T Corp. jumped 9.99 percent. Other construction stocks also gained, including Hyundai E&C Co. (2.5 percent), GS E&C Co. (4.48 percent), Daewoo E&C Co. (3.56 percent), and DL E&C Co. (6.05 percent).
The rally followed remarks by U.S. President Donald Trump, who said negotiations with Iran were in their final stages, raising hopes for an end to conflict in the Middle East and potential reconstruction demand.
Separately, the stocks of holding companies also surged on Thursday.
Doosan Corp. shares rose 6.02 percent to 1.57 million won, after earlier climbing as much as 7.44 percent. Samsung C&T Corp. jumped 10.12 percent, Hyosung Corp. 7.11 percent, Hanwha Corp. 4.47 percent, SK Inc. 3.42 percent, and HD Hyundai 3.47 percent.
The gains were driven by expectations that valuation discounts for holding companies may narrow as Korea’s government continues pushing for capital market reforms including measures to restrict duplicate listings and strengthen shareholder returns.
SK Securities Co. Analyst Choi Kwan-soon noted that net asset value discount for holding companies have already narrowed since the 2024 value-up program and corporate law reforms, and may continue to decline as dividend increases and share buybacks gain momentum.
Choi added that while discounts have been shrinking since 2024, holding companies remain undervalued, particularly those with discount rates above 50 percent, such as Hanwha, SK, Samsung C&T, and LG.
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