Cargo Solidarity Strike 'Aftershock' How Far... Samsung and Electronics Industry Also Watching Closely

Concerns Over Disruptions from Semiconductor Materials to Home Appliance Delivery

[Image source=Yonhap News]

[Asia Economy Reporter Kim Jin-ho] The nationwide general strike by the Cargo Solidarity Union, which has taken the national logistics system 'hostage,' is causing widespread damage across the industrial sector. In particular, the electronics industry, including 'Samsung,' which has played a pivotal role in the Korean economy, has become the new target of the Cargo Solidarity Union. As the strike shows signs of prolongation, concerns are rising that damage will become concrete, ranging from semiconductor raw materials to home appliance deliveries.

According to industry sources on the 11th, the Ulsan branch of the Cargo Solidarity Union attempted to block logistics by visiting LS Nikko Dong and Korea Zinc's Ulsan plant on the 9th.

It is known that they acted according to internal guidelines of the Cargo Solidarity Union, which specifically targeted these two semiconductor raw material companies with the aim of hitting Samsung Electronics' semiconductor production. This is analyzed as an effort to maximize the strike's impact by targeting 'semiconductors,' a core pillar of the Korean economy. However, when police forces were deployed that day, the union members withdrew without much commotion.

LS Nikko Dong and Korea Zinc produce high-purity sulfuric acid for semiconductors, which they supply to Samsung Electronics. This is an essential raw material used for cleaning semiconductor silicon wafers, and any disruption in supply would inevitably impact semiconductor production. An industry insider said, "There has been no damage so far, but we are closely monitoring the situation," adding, "If logistics blockades are fully implemented, we have an internal policy to take legal action through the police and other authorities."

Electronics companies such as Samsung Electronics and LG Electronics are also facing logistics disruptions. Although they operate their own logistics systems, the situation is becoming widespread and showing signs of prolongation, causing some delays.

For example, Samsung Electronics' Gwangju plant is experiencing delays in shipping home appliances such as refrigerators and air conditioners due to restricted access for vehicles by the Cargo Solidarity Union. In LG Electronics' case, products manufactured overseas and imported into Korea are reportedly stuck at ports due to the strike. An industry source said, "There is no significant damage yet, but if the situation prolongs, adverse effects are inevitable," adding, "There is concern about potential delays in deliveries to consumers."

Meanwhile, the automobile industry, including Hyundai Motor Company, is suffering the greatest damage from the general strike. Hyundai Motor's Ulsan plant has been repeatedly stopping and starting its production lines for four days. Of the approximately 6,000 vehicles involved in parts, steel, transport, and forwarding (shipping), only about 25% are currently operational.

The industry views the transport refusal situation as likely to continue for an extended period and is responding both internally and externally. Internally, efforts are being made to minimize losses, while externally, the automobile sector is appealing to truck owners by emphasizing that it is unrelated to the controversial Safe Freight Rate system. Especially in the small and medium-sized automobile parts industry, which lacks sufficient financial capacity, there is a high risk that difficulties will intensify in a short time, raising concerns about the very survival of companies.

This content was produced with the assistance of AI translation services.