Seoul: The labor union at South Korea's Samsung Electronics has successfully negotiated a basic wage deal, averting a strike that could have disrupted the global chip supply chain and negatively impacted the South Korean economy.

According to Thai News Agency, the agreement was approved by 74 percent of the 62,616 employees who participated in the vote. This development led to a 6 percent rise in Samsung's stock, fueled in part by investor enthusiasm for artificial intelligence (AI) technology, which has been boosting shares in the chipping sector.

The approval followed a five-month dispute centered around performance-based bonuses associated with the company's rapidly expanding AI chip business. This contentious issue had caused considerable discord among Samsung's workforce. However, management and labor representatives managed to reach a preliminary agreement on Wednesday. This resolution came after South Korea's Labor Minister stepped in at the eleventh hour, just before a planned employee strike was set to occur.

Despite the overall agreement, a minority union representing workers in Samsung's home appliance sector filed a petition on Tuesday with a South Korean court. The petition sought to halt the vote on the wage agreement, arguing that the deal disproportionately favors employees within the chipping division.

As part of the agreement's terms, Samsung will introduce a special performance bonus system for its semiconductor division over the next decade, coupled with an average salary increase of 6.2 percent.