DAMAGES INCURRED BY ONGOING STRIKE

[Anchor Lead]

A general strike by unionized truckers has entered its eighth day. It is dealing a serious blow to businesses and industries across the board, as seen with steelmaker POSCO’s plants, which were brought to a halt. The government estimates the strike has incurred damages of some 1.6 trillion won to the nation’s key industries.

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Piles of steel lay on roads around the plant. They are used for building bridges and cars. The warehouses are also filled with steel products. They are piling up because there is no way to transport and deliver the products due to the unionized truckers’ strike. With storage spaces running out, some plants were brought to a halt.

[Soundbite] Ma Seok-hee(POSCO Pohang Steel Mill) : "If the strike is prolonged, more production will have to be stopped. In the worst case, it will be inevitable to suspend operations of furnaces."

This tire company has not been able to take products out of its three factories for a week. An average of 80,000 tires are produced a day. But heaps of tires are stuck inside the factories. Most ready-mixed concrete factories have also suspended their operations due to disrupted supplies of cement. Carmakers are in emergency mode since they cannot send vehicles to be exported to ports. The trade ministry estimates the nation’s key industries have sustained losses of nearly 1.6 trillion won since the strike began. The biggest hit industries are the steel, petrochemical and auto sectors. The damage is predicted to grow since disruptions in product deliveries will likely lead to suspensions of production starting this week. The strike is also affecting the everyday lives of people, as deliveries of new cars and home appliances have been postponed. Last Thursday, Samsung Electronics sent customers notices about possible delays of deliveries.

[Soundbite] (Home Appliance Store Official) : "It is expected a protracted strike will disrupt deliveries. Therefore, it would be better to check with home appliance stores about their inventories."

The ministry expressed concerns that if the logistics disruptions continue, businesses and industries will have to suffer even greater losses.