A strike by truck drivers in South Korea is now entering its second week, forcing factories to cut production.
“Our economy and the overall industry are expected to suffer heavy losses if logistics disruptions continue at a time when we are facing several challenges such as disruptions in global supply chains and rising commodity prices,” said First Deputy Minister of Industry Jang Young-Jin, according to the news agency Yonhap.
During the first week, it has led to disruptions for car, steel and petrochemical manufacturers at a cost of 1,600 billion won, corresponding to 12.6 billion kronor according to government estimates, reports The New York Times.
The industry bodies of the petrochemical industry state that the daily deliveries from the factories have fallen by 90 percent, according to CNN. And the steel manufacturer Posco says that they have stopped production at certain plants because they no longer have room to store the finished products. The car manufacturer Hyundai says that production at all five factories in Ulsan 400 km southeast of Seoul is affected.
The drivers’ union with 22,000 members has demanded an extension of a government measure to guarantee shipping costs and prevent unsafe transport. The system means guaranteed minimum wages for drivers and was introduced in 2020, and expires at the turn of the year, according to Yonhap.
On Monday, about 6,600 of the drivers went on strike across the country. Four mediation rounds have so far failed.