BOK: "Samsung Electronics General Strike Could Lower This Year's Economic Growth Rate by 0.5%p"

Emergency Report Shared at Market Situation Monitoring Meeting on the 14th

Samsung Electronics Strike Could Disrupt Semiconductor Production by 30 Trillion Won

The Bank of Korea has reportedly informed the government that if the Samsung Electronics labor union proceeds with its planned 18-day general strike starting on the 21st, South Korea's economic growth rate for this year could fall by up to 0.5 percentage points.

According to the Bank of Korea on the 18th, an emergency report on the potential ripple effects of a strike at Samsung Electronics was shared at the market situation monitoring meeting held at the Bankers' Club in Jung-gu, Seoul, on May 14.

This report is said to have estimated the impact of the strike by setting variables such as the shutdown rate by production line, the rate of disruption to upstream and downstream industrial linkages, and fluctuations in global semiconductor prices.

In the worst-case scenario, where an 18-day general strike occurs due to the breakdown of labor-management negotiations at Samsung Electronics and memory semiconductor production is completely halted for three weeks, the estimated scale of semiconductor production disruption could reach 30 trillion won. The report also calculated that the nation’s economic growth rate could decline by approximately 0.5 percentage points.

Back in February, the Bank of Korea projected this year’s real gross domestic product (GDP) growth rate at 2.0%. However, if this scenario materializes, the growth rate may fall into the 1% range.

The Bank of Korea’s emergency report appears to have been delivered to the presidential office through the government.

On the same day, President Lee Jaemyung, in a post on X (formerly Twitter), addressed the Samsung Electronics labor union, stating, "While the basic rights of all citizens are guaranteed by the Constitution, they may be restricted within the bounds that do not infringe upon their essential content, for reasons such as public welfare," suggesting the possibility of invoking emergency adjustment powers.

Meanwhile, labor and management at Samsung Electronics resumed post-mediation negotiations at the Central Labor Relations Commission at the government complex in Sejong from the morning of the same day, but failed to achieve any significant progress. Negotiations are scheduled to resume on the 19th.

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