Hite-Jinro Group has declared a second leap forward with Jinro's re-listing. The photo shows the Jinro Icheon Factory located in Icheon, Gyeonggi Province. Here, 3.5 million bottles of soju are produced daily, totaling approximately 27.95 million boxes annually (based on 30 bottles per box).
[Asia Economy Reporter Kim Hyung-min] Production disruptions continue at HiteJinro's Icheon and Cheongju plants due to a strike by truck drivers affiliated with the Korean Confederation of Trade Unions (KCTU) Cargo Solidarity. Amid this, the KCTU has announced a general strike on the 7th, raising concerns that the situation may be prolonged.
On the 3rd, HiteJinro stated regarding strike countermeasures, "We plan to secure stability in logistics delivery through additional contracts with transportation companies." Some truck drivers have been on strike since last month, causing production volumes at the Icheon and Cheongju plants to fail to be properly shipped.
About 130 truck drivers belonging to Suyang Logistics, HiteJinro's contracted freight transport company, joined the Cargo Solidarity in March and have continued the strike. Due to this strike, the shipment volume from the Icheon and Cheongju plants has dropped to about 59% of the usual level. In the case of the Icheon plant, production was temporarily halted for 8 hours from 10 a.m. to 6 p.m. the previous day due to excess inventory. This is the first time that a HiteJinro plant has stopped due to a truck drivers' strike.
HiteJinro resumed production at the Icheon plant on the same day, but it is reported that striking truck drivers are blocking deliveries by other truck drivers.
Industry insiders warn that a "soju shortage" could occur. HiteJinro is the "number one soju company," producing brands such as Chamisul and Jinro. The volume of soju produced at the Icheon and Cheongju plants accounts for 70% of the company's total soju production.
Meanwhile, the Ministry of Land, Infrastructure and Transport demanded the KCTU Cargo Solidarity withdraw its general strike and vowed to respond strictly to illegal activities. The ministry stated, "If the Cargo Solidarity forcibly obstructs transportation by blocking entrances or damaging vehicles of other truck drivers who are performing normal transport, we will cooperate with the police to strictly respond from the outset according to laws and principles."
It also emphasized, "Under the zero-tolerance principle, we will hold those responsible accountable both civilly and criminally. If illegal traffic or transport obstruction is carried out using vehicles, driver's licenses will be suspended or revoked, and if orders to resume work are ignored, qualifications for freight transport workers will be canceled. We plan to respond strongly."
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