Samsung Electronics reached a tentative wage agreement with its labor union to avoid a strike scheduled for May 21.
The union previously planned for 48,000 workers to walk off the job for 18 days.
Company shares fell approximately 3% following the initial collapse of talks on May 20.
The dispute centered on union demands to abolish existing caps on bonus payments.
The potential walkout threatened the global supply of memory chips essential for the artificial intelligence industry.
Union members must now vote on the deal to permanently cancel the strike and prevent production disruptions.