The impact of the elimination of South Korean truckers on cars, steel and more

The impact of the elimination of South Korean truckers on cars, steel and more

Thousands of South Korean truckers were on strike for the seventh day on Monday, fighting over pay as fuel costs raise, disrupting production, easing back port operations and posing new risks to a stressed worldwide supply chain. South Korean industries, including auto, steel, petrochemical and cement, confronted accumulated losses worth about 1.6 trillion won ($1.2 billion) as of Sunday due to the ongoing trucker strike, the industry ministry said.

AUTOS

Following are details of the disruption, lost production and reactions from union officials and businesses.

The trucker strike had cost the South Korean auto industry about 5,400 vehicles in lost production, worth about 257 billion won as of Sunday, according to the industry ministry.

Some employees at Hyundai Motor and affiliate Kia Corp were using newly assembled cars to make deliveries, customers told Reuters. Hyundai Motor Group’s spokesperson was not immediately available for comment.

Hyundai’s Ulsan factories makes about 6,000 vehicles daily, the union said. The strike had cost the automaker more than 3,800 vehicles as of Friday – worth up to 120 billion won, according to the company’s union.

Hankook Tire & Technology Co Ltd, supplier to major automakers such as Volkswagen AG and Mercedes-Benz Group AG, has seen daily shipments fall by about 50%, a spokesperson said.

The industry ministry estimated that about 640,000 tires worth about 57 billion won had faced shipping issues as of Sunday.

BATTERIES One battery maker made shipments before the strike as a precaution, said an official at the maker who declined to be identified. The firm did not experience disruptions last week but will reassess its handling of shipments if the strike continued, the official said.

LG Energy Solution Ltd, SK Innovation Co Ltd’s battery unit SK On and Samsung SDI Co Ltd together command more than one-fourth of the global electric vehicle battery market. SEMICONDUCTORS

The truckers plan to stop shipments of raw materials for semiconductors produced in Ulsan, said union official Park Jeong-tae. Samsung Electronics Co Ltd and SK Hynix Inc, two of the world’s biggest memory chip makers, declined to comment.

Steelmaker POSCO said it halted work at some plants on Monday due to a lack of space to store unshipped products. About 450,000 tonnes of steel products worth about 698 billion won have faced transport issues due to the strike.

CEMENT, STEEL One major tech manufacturer does not expect near-term disruptions given its inventories of raw materials, said an official at the manufacturer on condition of anonymity.

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