South Korean stocks opened sharply higher on Thursday, owing to gains made by technology stocks, amid growing optimism over a possible U.S.-Iran peace agreement and Samsung Electronics' (KRX:005930) tentative wage deal with its labor union.
The benchmark Korea Composite Stock Price Index, or Kospi, rose 3.8%, or 277.42 points, to open at 7,486.37. The Kosdaq also increased 2.8%, or 29.23 points, to open at 1,085.30.
U.S. President Donald Trump said Wednesday that Washington was ready to launch further attacks on Tehran if Iran failed to agree to a peace agreement, though he suggested the U.S. could wait a few days to "get the right answers."
Trump described the situation as being "right on the borderline" and warned it could rapidly escalate. Six weeks after pausing Operation Epic Fury under a ceasefire, negotiations have made little progress, while increasing gasoline prices have weighed on Trump's approval ratings.
Meanwhile, shares of Samsung Electronics gained more than 6% in Thursday morning trade after the labor union and management appeared to agree on a proposed wage agreement, which suspended plans for a strike scheduled to take place from May 21 to June 7.
Under the proposal, Samsung Electronics will introduce a special performance bonus program for semiconductor employees tied to profitability. The 10-year scheme sets annual profit targets of 200 trillion won from 2026 to 2028 and 100 trillion won from 2029 to 2035.
Union members will vote on the proposed 2026 wage agreement from May 23 through May 28.