HiteJinro Icheon and Cheongju Factory Shipment Disruptions Continue
OB Beer Also Faces Shipment Issues at 3 Factories
Convenience Stores in Emergency to Secure Supply...Order Restrictions Implemented
Minju Labor Union Cargo Solidarity Begins General Strike on 7th
[Asia Economy Reporters Song Seung-yoon and Lim Chun-han] The 'Soju Shortage' triggered by the strike of cargo truck owners affiliated with the Korean Confederation of Trade Unions (KCTU) Cargo Solidarity is spreading throughout the liquor industry. HiteJinro has experienced disruptions in the shipment of soju products at its Icheon and Cheongju factories, which account for 70% of total soju production, and OB Beer is also facing supply instability due to the union's general strike.
According to industry sources on the 7th, OB Beer has been experiencing shipment disruptions since the morning at its three factories in Icheon, Cheongju, and Gwangju, where beer is produced. This is due to cargo truck owners affiliated with the Cargo Solidarity joining the general strike. An OB Beer official said, "Although shipments were increased during the holiday period compared to weekdays, so there is no immediate problem," adding, "However, we are preparing alternative measures such as arranging separate trucks in anticipation of a prolonged strike."
The delivery disruption began first at HiteJinro. Earlier, about 130 cargo truck owners belonging to Suyang Logistics, a freight transport subcontractor for HiteJinro, joined the Cargo Solidarity under the KCTU at the end of March and started striking. On the 2nd, striking cargo truck owners blocked deliveries by other truck owners, causing inventory overflow at the Icheon factory and temporarily halting product production. The shipment volume from the two factories also dropped to about 59% of the usual level.
Due to this situation, convenience stores are also facing an emergency in securing soju supplies. Since the 4th, Seven Eleven has limited orders at each store to one box each for bottled and PET products. Emart24 has restricted orders of bottled products to a maximum of three boxes, while PET products have no restrictions. Ministop allows ordering one box of bottled products and 10 PET products. CU has decided to suspend orders for Chamisul Fresh bottled products shipped from some logistics centers starting today. GS25 is currently operating with existing stock and has not imposed order restrictions but is closely monitoring the situation.
Most convenience stores are currently managing with existing stock, but securing supplies is expected to become difficult starting this weekend. If the situation prolongs, similar conditions are expected to spread to large supermarkets, wholesalers, and general restaurants handling alcoholic beverages.
HiteJinro plans to normalize logistics and deliveries as much as possible through additional contracts with transport companies, but if this situation continues, resolution seems difficult. The routes to bring products from factories are blocked. The union is demanding increased transportation fees and empty bottle handling charges, as well as payments for vehicle advertising, idling, and waiting times. A HiteJinro official said, "Due to blocked routes between factories and delivery destinations, even urgently arranged vehicles are unable to operate smoothly," adding, "The company is suffering damages, but in the long term, businesses handling soju and small merchants will inevitably be affected as well."
Meanwhile, the union launched a general strike starting at midnight today. From 10 a.m., they held send-off ceremonies at 16 locations nationwide and carried out blockade protests at major ports and logistics terminals. The government has stated it will respond strictly to illegal acts related to this general strike. The police have deployed officers and increased patrols at major logistics hubs such as ports, logistics terminals, and industrial complexes where illegal acts like transport obstruction and facility occupation by the Cargo Solidarity are expected. In case of illegal acts aimed at obstructing transport, on-site arrests will be the principle, and ringleaders will be pursued and punished to the end. In particular, illegal acts involving vehicles will be punished, and administrative measures such as suspension or cancellation of driver's licenses will be enforced in accordance with relevant laws.
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