J.P. Morgan South Korea FTM 22 May 26 Samsung Biologics; Samsung C&T; Samsung Life Insurance; SK Inc; Kakao and More

Research evidence excerpt

J.P. Morgan South Korea FTM 22 May 26 Samsung Biologics; Samsung C&T; Samsung Life Insurance; SK Inc; Kakao and More

Asia Pacific Equity Research

Due to market closures, there will be no publication of South Korea First to Market on 25 May. Publication

resumes on 26 May.

South Korea First to Market 22 May 2026

Top Stories

Samsung Biologics (Jihyun Cho) (207940 KS, OW)

Long-held disputes with labor unions, but awaiting near-term settlements; PT cut to W2,200K,

remain OW

Samsung Biologics’ labor dispute remains unresolved following employees’ return from a five-day full-scale strike (May 1-5),

with work-to-rule actions (no overtime/holiday shifts) still in place. While Samsung Electronics’ wage settlement yesterday is a

modest positive read-across for a potential near-term resolution, the timing and terms for Samsung Biologics remain uncertain.

In our prior note ( LINK ) , we laid out scenario sensitivities for earnings downside. With negotiations dragging on, we cut our

earnings estimates by 9%, reflecting (1) sales opportunity loss from the recent disruption extending into coming quarters and

(2) higher wage and one-off settlement costs (within the range of both parties’ proposals). Beyond labor, investors will likely

focus on signs of a rebound in new order wins after a muted 1Q26, and clarity on capacity decisions—particularly Plant 6

construction in Korea and the US expansion. On the back of the earnings reset, we lower our Jun-27 PT to W2,200K

(from W2,600K). That said, we view the recent correction as creating a more attractive entry point, down 17% YTD (vs. KOSPI

+85% and KRXHLTH -13%), assuming near-term settlement of the issue to support operating normalization from our lowered

earnings expectations. We remain OW.

Samsung C&T (Jay Kwon) (028260 KS, OW)