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South Korean Prime Minister: A one-day shutdown of Samsung's semiconductor factory could result in losses of up to 1 trillion won
ME News, May 17 (UTC+8): Samsung Electronics and its Korean union will resume wage negotiations next Monday in the presence of government mediators. The move could ease market concerns about a potentially disruptive strike at the tech giant.
“Even a one-day shutdown at Samsung Electronics’ semiconductor factories is expected to cause direct losses of up to 1 trillion won (about $668 million),” South Korean Prime Minister Kim Min-seok said Sunday after an emergency meeting with ministers. “Even more worrying is that a brief halt in semiconductor production lines could lead to months of production being unable to restart.” Kim Min-seok also added that if materials have to be discarded due to the strike, market fears that economic losses could expand could grow to as much as 100 trillion won.
Under the relevant rules, if the South Korean government determines that a labor-management dispute may endanger the economy or people’s livelihoods, the Minister of Employment can issue an emergency arbitration order. The order would immediately ban industrial action for 30 days, while the National Labor Relations Commission carries out mediation and arbitration. This measure is rarely used. (Jin10) (Source: ODAILY)