Business Groups Warn Concrete Truckers' Strike Threatens National Economy

Samsung's Pyeongtaek Campus Chip Fab Expansion Site Concrete Truckers' Union Blocks Concrete Shipments Construction Side Officially Cancels Pouring Work Six Business Groups Warn of "Supply Chain Paralysis"

Finance|
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By Lee Seok-jin
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null - Seoul Economic Daily Finance News from South Korea

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A collective work stoppage by the National Ready-Mix Concrete Transport Workers' Union across the Seoul metropolitan area entered its fourth day, fully halting concrete-pouring work at Samsung Electronics' (005930) semiconductor construction site at its Pyeongtaek campus. The business community expressed concern that the stoppage could cause significant disruptions at major industrial sites, including semiconductors, at a time when ready-mix concrete industry operating rates remain at around 14% due to cost burdens from rising oil prices.

According to the ready-mix concrete and semiconductor industries on the 11th, major metropolitan-area firms such as Deokwon Remicon and Daewang Remicon mobilized 19 directly operated mixer trucks not affiliated with the union on the morning of that day to respond to the prolonged stoppage, attempting to deliver concrete to the Samsung Electronics Pyeongtaek campus construction site. The goal was to supply 410 cubic meters of ready-mix concrete for work on the semiconductor plant's columns and slabs (floor panels).

However, union members blocked the area near the batch plant—the ready-mix concrete production facility—with vehicles and completely sealed off entry and exit, leading to a physical standoff. With shipments fully blocked, the Samsung Electronics construction site officially canceled the pouring work scheduled for 9 a.m. that day.

Ready-mix concrete is a representative time-sensitive material that must be poured within a certain time after production. As a result, concerns are growing that if supply disruptions are prolonged, subsequent construction work at the semiconductor plant—where process schedules are tightly interlocked—could face cascading delays. The industry believes the possibility cannot be ruled out that the union's actions, including blocking even the normal transport of non-member vehicles, could escalate into legal disputes such as obstruction of business.

As the situation spread uncontrollably, six economic organizations—the Korea Enterprises Federation, the Korea Chamber of Commerce and Industry, the Korea International Trade Association, the Federation of Korean Industries, the Korea Federation of SMEs, and the Korea Mid-sized Enterprises Federation—jointly released a statement that afternoon titled "The Business Community's Position on the Ready-Mix Concrete Transport Union's Transport Refusal," expressing deep concern.

In the statement, the business community criticized, "The Seoul metropolitan area is a key region where not only semiconductor plants but also advanced industry construction sites directly tied to people's livelihoods, such as housing and national infrastructure, are concentrated," adding, "This collective transport refusal, which began by scrapping a hard-won labor-management agreement, raises serious concerns of paralyzing supply chains and spreading damage across the entire national economy."

It further urged, "At a time when upstream and downstream related industries are facing crisis due to high prices and a construction slump, we must gather wisdom for mutual prosperity rather than engage in unjustified transport refusal," and called for "pending issues, including transport rates, to be resolved reasonably through dialogue and compromise rather than physical action."

The economic organizations also asked the government to step in to mediate so that negotiations can resume quickly, while urgently preparing measures to minimize damage at construction sites so that timely investment in advanced industries can proceed without disruption.

This transport refusal arose after a wage negotiation agreement between labor and management in the ready-mix concrete industry was scrapped.

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Original reporting by Lee Seok-jin for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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