Cheongju Factory Also Faces Difficulty in Normal Shipment
70% of Soju Produced at Two Factories
[Asia Economy Reporter Moon Chaeseok] Production at HiteJinro's Icheon plant has been halted due to a strike by truck owners affiliated with the Cargo Solidarity under the Korean Confederation of Trade Unions (KCTU). As the economy gradually emerges from the impact of COVID-19 and reopening (resumption of economic activities) gains momentum, concerns are rising that the sharp decline in liquor shipments may hinder economic recovery.
According to industry sources on the 2nd, the production line at HiteJinro's Icheon plant stopped operating from 10 a.m. that day. Since some truck owners began striking last month, the production volumes from the Icheon and Cheongju plants have not been shipped normally. In the case of the Icheon plant, inventory has piled up, forcing a temporary suspension of production.
This is the first time that a HiteJinro plant has stopped due to a truck owners' strike.
About 130 truck owners belonging to Suyang Logistics, HiteJinro's contracted freight transport company, joined the Cargo Solidarity under the KCTU in March and have since been striking. It is reported that about 30% of the truck owners from Suyang Logistics are participating in the strike.
Due to the truck owners' strike, liquor shipments from the Icheon and Cheongju plants are only about 59% of the usual volume. These two plants produce soju brands such as Chamisul, accounting for approximately 70% of HiteJinro's total soju production.
The industry is concerned that with the Cargo Solidarity announcing a general strike on the 7th, the logistics situation across the liquor distribution sector and the entire industry will significantly worsen. An industry official said, "Economic damage is feared not only for the liquor industry and general consumers but also for small business owners."
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