South Korean Prime Minister: Daily Loss from Samsung Semiconductor Plant Shutdown Could Reach 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 may ease market concerns about a potentially disruptive strike at the tech giant. "A one-day shutdown of just Samsung Electronics' semiconductor plant is expected to cause direct losses of up to 1 trillion KRW (approximately 668 million USD)," 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 make it impossible to resume production for several months." Kim Min-seok added that if materials must be discarded due to the strike, market concerns suggest economic losses could expand to as much as 100 trillion KRW. According to regulations, if the South Korean government determines that a labor dispute could harm the economy or people's livelihoods, the Minister of Labor can issue an emergency arbitration order. This order would immediately suspend industrial action for 30 days, while the National Labor Relations Commission conducts mediation and arbitration. This measure is rarely invoked. (Jin Shi)