Samsung shares close at record high as labor union suspends general strike

Shares of the South Korean tech giant Samsung closed at a record high on Thursday after the unionized workers at the firm said they have decided to suspend plans for a general strike, according to local media.

"We will postpone the general strike scheduled for May 21-June 7 until further notice," the joint headquarters of Samsung Electronics' labor union said in a notice, Yonhap News Agency reported on Wednesday.

Samsung shares rose about 8.5% to 299,500 won ($199.4), their highest-ever closing level, after the South Korean government intervened in talks between the company and the union.

Meanwhile, the broader Kospi index also rallied 8.42% to 7,816 points, posting its strongest gain in two-and-a-half months as investor sentiment improved.

However, a group of shareholders said on Thursday they would take legal action against the tentative wage deal, calling it illegal.

The strike had originally been scheduled to begin on Thursday and last for 18 days.

Under the tentative agreement, Samsung will allocate a special semiconductor performance bonus equivalent to 10.5% of business performance earnings, without a cap. The union had initially demanded a 15% share of company profit for bonuses.

The deal will be put to a vote by union members from Friday to Wednesday.