Breaking｜Samsung Dramatically Postpones Massive Strike, Korean Chip Stocks Surge, MEXC Launches Samsung and SK Hynix Futures

In the late hours of May 20, 2026, a massive strike that threatened to disrupt the global semiconductor supply chain was halted at the last minute. With just one hour left before the full-scale walkout originally scheduled to begin on May 21, Samsung Electronics' labor and management reached a tentative agreement on the 2026 performance bonus under the urgent mediation of South Korea's Minister of Employment and Labor, Kim Young-hoon. The planned 18‑day strike from May 21 to June 7 has been provisionally suspended.

Samsung Electronics immediately issued a statement confirming that both sides had reached a preliminary wage and collective bargaining agreement. The Samsung union announced it would suspend the planned strike action and hold a vote among its members on the interim wage proposal from May 22 to 27. According to Yonhap News, the agreement includes an average wage increase of 6.2%, the removal of certain bonus caps, and a new long‑term special bonus scheme linked to operating profit and business performance for the semiconductor division, with part of the bonus to be paid in stock.

Market Rally Accelerates: Samsung Jumps Over 6%, KOSPI Triggers Circuit Breaker

News of the strike’s postponement acted like a starter’s pistol, igniting the Korean stock market. At the open on May 21, the Korea Composite Stock Price Index (KOSPI) jumped 3.85%, then quickly extended its gains to more than 6%, triggering a circuit breaker that halted program trading for five minutes. Samsung Electronics, the focal point of the strike crisis, surged nearly 7% in early trading. SK Hynix, the other pillar of the AI memory chip duopoly, also rose sharply in tandem, reflecting continued market enthusiasm for the AI memory boom and high‑bandwidth memory (HBM) demand.

By the closing bell, the KOSPI had soared 8.42% to 7,815.59, its biggest single‑day advance since April 1. Samsung Electronics closed up 8.51% at 299,500 won, an all‑time high. SK Hynix ended 11.17% higher at 1.94 million won. So far this year, South Korea’s stock market has gained 85%, far outperforming other major global markets.

Samsung Q1 Earnings: Record Revenue and Operating Profit

Samsung Electronics’ first‑quarter 2026 earnings report showed record results. Revenue for the quarter reached 133.9 trillion won (approximately $90.1 billion), up 43% sequentially and 69% year‑on‑year. Operating profit stood at 57.2 trillion won ($38.5 billion), an increase of 7.5 times from a year earlier. Net profit was 47.2 trillion won ($31.8 billion), up 4.8 times year‑on‑year. Both revenue and operating profit hit all‑time highs.

Structurally, Samsung’s memory business posted Q1 revenue of 74.8 trillion won, exceeding 50% of total revenue for the first time. The Device Solutions (DS) division, which houses the memory business, recorded operating profit of 53.7 trillion won, a year‑on‑year surge of 47.8 times, driven primarily by higher sales of high‑value‑added AI products. Samsung’s HBM sales more than tripled year‑on‑year in Q1, and the company has begun shipping its first mass‑produced HBM4 products to NVIDIA’s Vera Rubin platform. It plans to provide HBM4E prototypes to key customers from the second quarter and expects HBM4 to account for more than half of total HBM sales starting in Q3. The introduction of Samsung’s 1c‑process DRAM has further enhanced HBM4 performance. The company is actively expanding its market share in products such as DDR5 and SOCAMM2, and some customers have already booked supply for 2027. Samsung expects supply‑demand conditions to be even tighter next year than this year.

SK Hynix Q1 Revenue Breaches 50 Trillion Won for First Time

SK Hynix also delivered a standout performance in the first quarter of 2026, setting multiple records. Quarterly revenue surpassed the 50 trillion won mark for the first time, reaching 52.58 trillion won, up 198% year‑on‑year. Operating profit came in at 37.61 trillion won, a year‑on‑year jump of 405.5% and ahead of analysts’ expectations of 35.7 trillion won. Net profit was 40.34 trillion won, nearly four times higher than the 8.1 trillion won reported in the same period last year. More notably, SK Hynix’s operating margin for the quarter reached 72%, overtaking Samsung Electronics. Behind this is the company’s near‑monopoly position in the HBM market – the vast majority of HBM4 orders from major global AI chipmakers are being filled by SK Hynix.

On May 12, Citi issued a research report sharply raising its target price for SK Hynix from 1.7 million won to 3.1 million won, an increase of over 80%, while raising its operating profit forecasts for 2026 and 2027 by 8% and 16% to 251 trillion won and 347 trillion won, respectively. Nomura raised its target price for Samsung Electronics to 590,000 won and for SK Hynix to 4 million won. Based on current levels, both chip giants still have nearly double the upside. Nomura also lifted its year‑end target for the KOSPI to between 10,000 and 11,000 points, citing the AI‑driven memory supercycle.

NVIDIA Earnings and Korean Policy Developments

The global semiconductor sector also saw positive news. NVIDIA recently reported better‑than‑expected earnings and announced an $80 billion share buyback, reinforcing market confidence in AI infrastructure spending. As key HBM suppliers to NVIDIA, both Samsung and SK Hynix directly benefit from this trend.

In addition, South Korea’s People Power Party submitted a revised “Semiconductor Special Act” to the National Assembly on May 20, proposing to raise the tax credit rate for semiconductor investment from the current 15% to 25%, aiming to strengthen the country’s competitiveness in the global AI semiconductor race. Earlier, the presidential office announced on May 18 that it would launch the “K‑Semiconductor 2.0” strategy in the second half of the year, planning to channel over 100 trillion won in private investment into the semiconductor sector by 2027. The plan includes expanding dedicated HBM production lines, developing next‑generation packaging technologies, and localizing materials supply chains.

Against this backdrop, multiple institutions have upgraded their outlook on the Korean stock market. Ha Seok‑keun, Chief Investment Officer at Eugene Asset Management, said the Samsung labor agreement is a positive signal for reducing uncertainty, and that NVIDIA’s earnings once again underscored strong AI‑driven memory demand. Jung In‑Yun, CEO of Fibonacci Global Asset Management, also noted that Korea’s semiconductor industry remains very strong fundamentally, driven by global AI infrastructure demand.

The Korean stock market has posted substantial gains this year, led by memory chip stocks powered by AI demand. Following the postponement of the Samsung union strike, the KOSPI climbed back above 7,800, with net institutional buying reaching 2.9 trillion won in a single day, reflecting high institutional interest in the Korean semiconductor sector.

MEXC Launches Samsung and SK Hynix Perpetual Futures – Capture the Chip Stock Opportunity

To meet users’ demand for investing in top Korean tech stocks, MEXCly launched perpetual contracts for Samsung (SAMSUNGUSDT) and SK Hynix (SKHYUNIXUSDT). Users can trade directly with a MEXC account – no brokerage account or Korean won funding required – and enjoy 24/7 trading, completely free from traditional stock market hours. The contracts support up to 20x leverage, and users can benefit from a limited‑time zero trading fee.

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Risk Warning: This article is for informational purposes only and does not constitute any investment advice. The digital currency market is highly volatile. Please make careful decisions based on your own circumstances.