Shutdown Fears Spread Across Industrial Sites... Trillion-Won Scale Damages Loom

Government Issues Work Commencement Order Policy
Yet Some Non-Union Members Join Strike
Burdened by Daily Cost Increases
Worries Over Securing Additional Orders from Hard-to-Find Overseas Suppliers
Production Halted Due to Raw Material Import Blockade
Safety and Quality Alarms at Construction Sites
"Who Is Responsible for Poor Construction?" Complaints Arise

[Asia Economy reporters Choi Daeyeol and Cha Wanyong] Company A, which exports beauty medical devices, is struggling to find vehicles to transport its products due to the Cargo Solidarity Union strike that began on the 24th. Even if they manage to secure alternative transportation, access to direct customs inspection sites or terminals is blocked, making timely delivery difficult and causing concerns over delay penalties.

Company B, which exports daily necessities, is also suffering from rapidly increasing logistics costs such as detention fees, demurrage charges, and storage fees after the container release date passed at Incheon Terminal. A company official lamented, "The daily rising costs are burdensome, but we are also worried whether we can secure additional orders from overseas clients we have struggled to obtain."

As the nationwide general strike by the Cargo Solidarity Union under the Korean Confederation of Trade Unions and the National Public Transport Workers' Union enters its second day on the 25th, conflicts are emerging across logistics sites, the vital 'blood vessels' of the industry frontline. Although the government considered issuing the first-ever work commencement order on the first day of the strike, concerns are growing that the participation of some non-union drivers in the strike will lead to a logistics crisis and industrial damages amounting to trillions of won.

On the afternoon of the 24th, when the Cargo Solidarity of the Korean Public Service and Transport Workers' Union under the Korean Confederation of Trade Unions went on a general strike, finished cars were piling up as the car carrier operation rate dropped at the Kia Autoland Gwangju 2 Plant finished car parking lot in Seo-gu, Gwangju.

Steel shipments halted... Shutdown fears everywhere

The Korea International Trade Association received a total of 19 damage reports at its reporting center by the afternoon of the previous day due to the collective transport refusal. Many reports cited penalty fees from delayed deliveries or severed relationships with overseas buyers and clients. Numerous companies also reported increased logistics costs or production halts due to the inability to bring in raw and subsidiary materials.

Large cargo owners and logistics companies with available resources had prepared 'Plan B' by establishing separate organizations or personnel for cargo transport ahead of the general strike, but small and medium manufacturers and trading companies are left to bear the costs alone. If the situation prolongs, disruptions are expected not only in industrial sites but throughout society. At Hyundai Steel, for example, nearby plants that held a send-off ceremony at the start of the strike were unable to ship products.

A steel industry official said, "If essential materials for major Korean sectors such as construction, shipbuilding, and home appliances are not produced and shipped on time, the industrial foundation could be shaken." About 300 export vehicles scheduled for shipment from Hyundai Motor's Asan plant are also grounded.

According to government data, damages in related industries such as automobiles, steel, and petrochemicals reached 1.6 trillion won during the first six days of the strike in June. The industry expects intangible damages that undermine external trust as domestic manufacturers’ exports are disrupted. Container import and export volumes shrank to less than half on the first day of the strike, and overseas export-import issues are expected to intensify as early as next week.

Jang Jung-woo, head of labor-management cooperation at the Korea Employers Federation, said, "Since cargo owners are scattered nationwide, it is difficult to inspect every location thoroughly, but the government needs to actively communicate that it will respond according to law and principles and also engage in preventive measures."

Representatives of civic, social, and religious organizations held a press conference on the 25th in front of the War Memorial in Yongsan-gu, Seoul, expressing their support for the Cargo Solidarity strike and condemning the government. Photo by Kim Hyun-min kimhyun81@

"Who is responsible for poor construction and housing supply?"

Safety and quality management alarms are ringing at construction sites nationwide. Structural work must be completed before winter, but the strike has disrupted material supply. As temperatures drop, concrete may not cure properly, raising concerns about poor construction, and using heaters to raise temperatures increases risks such as suffocation accidents. Rushing to meet delayed schedules also heightens the risk of safety accidents.

A construction industry official said, "Concrete is generally not poured at temperatures below 4 degrees Celsius because it may not dry properly or lose strength. If pouring schedules are missed and the cold season arrives, delays of 3 to 4 months are inevitable." He added, "Sites that force schedules may fail to meet pouring standards, leading to poor construction."

The Dunchon Jugong Apartment reconstruction project in Gangdong-gu, Seoul, considered the largest reconstruction project in Korea, is also facing unavoidable schedule delays due to the strike. After construction was halted for half a year due to conflicts between the contractor and the union, further delays could push back the revised completion date again.

An official from a major construction company said, "There are differences depending on region and process, but since necessary materials were stockpiled in advance, no major problems are expected for the time being. However, for large projects like Dunchon Jugong, the volume of materials needed is so large that response is difficult."