Cargo Solidarity General Strike Causes 1.6 Trillion KRW Disruption in Production and Shipment of Automobiles and Steel

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Dongwoo Lee] It is estimated that the general strike by the Cargo Solidarity Headquarters of the Public Transport Workers' Union under the Korean Confederation of Trade Unions has caused production and shipment disruptions worth over 1 trillion won in major industries.

On the 13th, the Ministry of Trade, Industry and Energy announced that from the 7th to the 12th, production, shipment, and export disruptions amounting to 1.6 trillion won occurred in major sectors such as automobiles, steel, petrochemicals, and cement.

In the automobile sector, production disruptions worth approximately 257.1 billion won occurred due to parts import delays, affecting a total of 5,200 vehicles. In steel, most products relying on land transportation were restricted from shipment, delaying shipments of 450,000 tons worth about 697.5 billion won.

In petrochemicals, centered around petrochemical complexes such as Yeosu and Daesan, product shipment restrictions have resulted in approximately 500 billion won worth of products not being shipped as planned.

Cement shipments have decreased by more than 90% compared to normal levels, with a total of 810,000 tons (valued at 75.2 billion won) of cement not being supplied to construction sites and other locations. Tires are also facing shipment difficulties with about 640,000 units (worth 57 billion won) affected.

The Ministry of Trade, Industry and Energy stated, "Logistics disruptions are directly and indirectly impacting the entire industry, so the actual damage is expected to be greater," and added, "Production disruption damages will intensify starting this week, significantly expanding the scale of losses."

Jang Young-jin, the first vice minister of the Ministry of Trade, Industry and Energy, said, "If logistics disruptions related to the Cargo Solidarity continue for a long time, massive damage to the national economy and the entire industry is expected, so a swift and amicable agreement and normalization of logistics are urgently needed."

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