South Korean Prime Minister: Samsung Semiconductor Plant Shutdown Could Cause Losses of Up to 1 Trillion Won Per Day

Odaily reported that 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 at the tech giant. "A one-day shutdown of Samsung Electronics' semiconductor plant alone is expected to result in direct losses of up to 1 trillion won (approximately $668 million)," said South Korean Prime Minister Kim Min-seok on Sunday after an emergency meeting with ministers. "What is more worrying is that even a brief halt in semiconductor production lines could take months to restore." Kim added that if materials have to be discarded due to the strike, market concerns suggest economic losses could expand to as high as 100 trillion won. According to regulations, if the South Korean government determines that a labor dispute may harm the economy or people's livelihoods, the Minister of Employment and Labor can 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 rarely been invoked. (Jinshi)