"Cement Price Hike Must Be Withdrawn"... Over 700 Gather as 'Ready-Mix Concrete Industry Furious'

Over 700 Small and Medium Ready-Mix Concrete Companies Hold Protest Rally
Raise Issues of Cement Industry Monopoly and Supply Control
"Concerns Over Negative Impact on Construction Market and Price Stabilization Policies"
Chairman Kim Gi-moon: "Efforts to Legislate Delivery Price Linkage System"

# Last January, a sales representative from cement company A visited concrete company B in Chungbuk and notified them that "cement prices will increase starting February." He pressured them by saying, "Cement inventory is low," warning that if they do not agree to the price hike, supply might not be properly maintained.

# The representative of C Concrete in Jeonnam stated, "The 19% cement price increase implemented in February this year was finally reflected in the concrete cost increase starting May after many difficulties," adding, "Even then, only a portion was reflected." He lamented, "If cement prices rise another 10%, small businesses in provincial small cities will find it hard to survive."

Small and medium-sized concrete companies nationwide have expressed dissatisfaction with the cement industry's successive price hikes and have begun collective action.

On the morning of the 25th, about 700 concrete industry stakeholders gathered at the Korea Federation of SMEs in Yeouido, Seoul, holding a rally demanding the withdrawal of the cement price increase.

The Emergency Countermeasures Committee of Small and Medium Concrete Industries issued a resolution demanding △ withdrawal of the cement price increase △ cessation of threats and coercion using cement supply as leverage △ disclosure of cement manufacturing costs and factors behind the price hikes. They also urged the government to conduct continuous monitoring of monopolistic practices in the cement market and investigate unfair trade cases.

The cement industry reportedly notified concrete companies that, following price hikes in July last year and February this year, cement prices will be further increased by 12-15% starting next month. Since cement is a raw material for concrete, the industry is inevitably sensitive to cement price increases.

On this day, the concrete industry appealed that they are facing the worst crisis not only due to cement price hikes but also because of the Cargo Solidarity strike, soaring prices of raw materials such as sand and gravel, and rising fuel and transportation costs.

An industry insider said, "We worry that if prices are not raised, cement supply might be stopped or reduced." The cement industry is dominated by five companies controlling 94% of the market, following Hanil Cement's acquisition of Hyundai Cement in 2017 and Asia Cement's acquisition of Halla Cement in 2018. Because the cement industry is close to a monopoly, if they control supply, small and medium concrete companies have no choice but to be dragged along.

Small and medium concrete companies also find it difficult to demand price increases from construction companies. This is because rising concrete prices can affect housing construction costs and sale prices. The concrete industry expects that additional cement price hikes will negatively impact the construction market in the second half of the year and the government's price stabilization policies.

They delivered the resolution to Kim Gi-moon, president of the Korea Federation of SMEs, requesting joint responses to the difficulties faced by small and medium enterprises.

President Kim said, "We will provide full support, including requesting government mediation, along with preparing win-win measures between large cement companies and small and medium concrete industries." He added, "We will also strive to legislate a delivery price linkage system to fundamentally resolve issues in the industrial ecosystem among cement, concrete, and construction companies."

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