The labor union of Samsung Display has reached a wage agreement with management and will end its two-week partial strike soon, union officials said Monday.

Six union representatives went on strike on June 21, demanding a 6.8 percent hike in base pay, in the first-ever walkout at the world's largest mobile display maker.

In the latest negotiation, the union withdrew its demand and accepted the company's proposal of a 4.5 percent raise, and the agreement was approved by 83 percent of its members in a subsequent vote, the union said.

"We withdrew our wage increase demand for the sake of the company's competitiveness in consideration of the prolonged COVID-19 and intensifying external competition," the union said.

"The company promised to provide wage data for the next wage negotiations, which will resume four months later."

Six leading union members, who have been striking at its plant in Asan, about 100 kilometers south of Seoul, will return to work next week after the two sides sign the wage agreement this Thursday, the union added.

The strike is the first among electronics affiliates of Samsung Group. It is also the first walkout at a Samsung company since Samsung Electronics Vice Chairman Lee Jae-yong, the de facto leader of South Korea's top conglomerate, pledged to discard the "no labor union" policy in May last year.

Samsung Display's union was launched in February last year under the Federation of Korean Trade Unions. It has about 2,400 members, or 10 percent of the total company workers. (Yonhap)