South Korea truck strike hits economy for $1.2 bln

STORY: A strike by truckers in South Korea has cost the economy $1.2 billion in lost production and unfulfilled deliveries.

That’s according to government estimates Monday (June 13).

The strike is now in its seventh day and has hit major firms.

Auto giant Hyundai has cut production for some assembly lines, while cement makers have lowered output.

Average daily shipments from petrochemical factories have also dropped 90%.

The disruption also threatened semiconductor producers like Samsung and SK Hynix - which could have a knock-on effect for global supply.

Although neither company has yet reported any issues.

Sources at semiconductor companies have told Reuters they did not expect to see an imminent impact on chip production thanks to stockpiling of raw materials.

The strikers are protesting soaring fuel prices and are asking for minimum pay guarantees.

Four rounds of negotiations with the government have failed to make a breakthrough.

The strikes are a test for President Yoon Suk-yeol, who only took office five weeks ago.

The government has urged truckers to return to work, but also said it would keep trying to end the disagreements through dialog.

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