The won-dollar exchange rate, the KOSPI and the Kosdaq are displayed on an electronic board at Hana Bank headquarters in Seoul, Monday. The KOSPI closed 22.86 points, or 0.31 percent higher, at 7,516.04, while the Kosdaq fell 18.73 points, or 1.66 percent, to close at 1,111.09. Yonhap
Samsung Electronics shares jumped nearly 4 percent Monday after a court partially sided with the company in its request for an injunction against labor unions planning a large-scale strike, easing investor concerns over potential disruptions to chip production.
The company’s shares climbed 3.88 percent to close at 281,000 won ($188).
Together with SK hynix, Samsung Electronics has recently been driving the KOSPI’s record-breaking rally amid optimism over sustained growth in the artificial intelligence (AI) industry.
In its ruling, a district court in Suwon, Gyeonggi Province, said the unions should maintain normal staffing levels for operations related to safety facilities, prevention of equipment damage and measures to prevent product defects, effectively limiting the scope of the planned walkout.
The labor unions, which are demanding the abolition of the current cap on performance bonuses, had previously announced an 18-day strike scheduled to begin Thursday. In response, the chipmaker submitted the injunction request against the unions on April 16, arguing that the planned collective action could violate labor laws.
Last Friday, the KOSPI surpassed the 8,000-point mark during intraday trading for the first time ever before reversing course and closing below the 7,500 level.
The country’s benchmark index extended its steep decline Monday morning, opening 49.89 points, or 0.67 percent, lower at 7,443.29 before accelerating losses and plunging into the 7,100 range.
As selling pressure intensified, the Korea Exchange imposed a five-minute sidecar to curb program sell orders at around 9:19 a.m.
The measure was triggered for a second consecutive session after a similar curb was activated last Friday. Under market rules, a sell-side sidecar is imposed when the KOSPI 200 futures index falls more than 5 percent and remains at that level for at least one minute.
Source: Korea Times News
