South Korean Prime Minister Warns of 1 Trillion Won Daily Loss if Samsung Semiconductor Plants Shut Down

According to ME News, on May 17 (UTC+8), Samsung Electronics and its Korean labor union will resume wage negotiations next Monday with the participation of government mediators, a move that may ease market concerns over a potentially disruptive strike by the tech giant. “A single day of shutdown at Samsung Electronics’ semiconductor plants is estimated to cause direct losses of up to 1 trillion Korean won (approximately $668 million),” said South Korean Prime Minister Kim Min-sik on Sunday after an emergency meeting with ministers. “More concerning is that even a brief halt in semiconductor production lines could result in months of delayed recovery.” Kim added that if strikes force materials to be discarded, market fears of economic losses could escalate to as high as 100 trillion Korean won. Under regulations, if the South Korean government determines that a labor dispute may endanger the economy or public welfare, the Minister of Labor may issue an emergency arbitration order. This order immediately prohibits industrial action for 30 days while the National Labor Relations Commission conducts mediation and arbitration. This measure has been rarely invoked. (Jin10) (Source: ODaily)