South Korean Prime Minister: Samsung Semiconductor Plant Shutdown Will Incur Daily Losses of Up to 1 Trillion KRW

Odaily Planet Daily News Samsung Electronics and its Korean union will resume wage negotiations next Monday with the participation of government mediators, a move that could ease market concerns about a potentially disruptive strike at the tech giant. "A single day shutdown at Samsung Electronics' semiconductor plant is expected to cause direct losses of up to 1 trillion won (approximately $668 million)," South Korean Prime Minister Kim Min-seok said Sunday after an emergency meeting with ministers. "What is more concerning is that a brief halt in semiconductor production lines could take months to restore." Kim added that if materials must be discarded due to the strike, market concerns suggest economic losses could expand to as much as 100 trillion won. According to regulations, if the South Korean government determines that a labor dispute may harm the economy or public welfare, 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 is rarely used. (Jin Shi)