Automotiv Exports July 2022

Trucker strike stresses S. Korea economy,
threatens supply chains
South Korea’s prime minister warned
that the disruption of cargo transport
could cause “irrecoverable” damage to
the country’s economy, as a nationwide
truckers’ strike initiated.
About 6,840 truckers were rallying at
14 sites across South Korea, continuing
to trigger a delay in the shipment and
delivery of key items like steel, cement,
petrochemicals and tires, the Transport
Ministry said in a statement.
The statement said some steel and cementrelated
factories halted their operations.
It accused some striking truckers of
obstructing cargo transports at some major
southeastern ports. During a Cabinet
meeting, Prime Minister Han Duck-soo,
South Korea’s No. 2 official, said the “illicit
activities” by the striking truckers will never
receive public support, according to Cho
Yong-man, the No. 2 vice culture minister
who serves as a government spokesperson.
Cho cited Han as saying that the disruption
of cargo transport could pose “a big
irrecoverable blow” to South Korea’s
economy, which already faces other
difficulties.
The Ministry of Trade, Industry and Energy
said in a statement that the first six days of
the strike caused an estimated 1.6 trillion
won ($1.2 billion) in damages.
Truckers are on a strike, calling for
an extension of temporary measures
guaranteeing minimum wages amid soaring
fuel prices. They met government officials
several times but each meeting ended
without any breakthrough.
In a statement, the Cargo Truckers
Solidarity said the Transport Ministry
lacked the resolve and capacity to narrow
differences over the truckers’ demand.
The Transport Ministry said it’s seeking to
continue talks to address the issue.
South Korean officials and experts say the
strike’s damage has so far been limited to
the country’s domestic industry, though
a prolonged strike may undermine the
global supply chains already hit by Russia’s
assault on Ukraine and China’s COVID-19
restrictions. It also represents the first
major industrial action under newly elected
President Yoon Suk-yeol, a pro-business
conservative who previously vowed to deal
“strictly” with labor disputes.
South Korea is the world’s largest memory
chip exporter and home to global chip
powerhouse Samsung Electronics, as well
as large car companies including Kia and
Hyundai Motors.
“All we are asking for is to remove the
uncertainty in our lives,” Cho Jeong-jae, a
member of the Cargo Truckers Solidarity
Union, told.
The truckers say they are “desperate” due
to sharp rises in fuel costs – with inflation
in South Korea at its highest level in over
a decade according to official data last
month.
“When fuel prices drop, it’s reflected very
quickly by lowering freight fees,” Cho said.
“But that’s not the case when fuel prices
rise. Our livelihood is at stake.”
Loud music blared out from a van parked
near a port in Incheon , AFP reporters saw,
as dozens of trucks lined up the road, flying
flags hoisted on bamboo canes.
Similar protests were happening across
the country – more than 7,000 people
took part in the protests at 14 locations,
according to the land ministry.
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