Korean industries cut production as trucker strike continues

Steelmakers, oil refiners and tire manufacturers have dramatically reduced output due to the trucker strike, which is well into its second week.

Won Hee-ryong, minister of land, infrastructure and transport, thanks a truck driver transporting products from Posco's Pohang Steel Mill on Wednesday. [NEWS1]

Steelmakers, oil refiners and tire manufacturers have dramatically reduced output due to the trucker strike, which is well into its second week.

Steel plants are only running at half normal levels, and petrochemical plants at 5 percent, Lee Sang-min, minister of the Central Disaster and Safety Countermeasures Headquarters, said Wednesday.

According to Lee, losses for major industries totaled 3.5 trillion won ($2.65 billion) as of Tuesday.

Kumho Tire may take production down to 30 percent of normal on Wednesday due to the lack of trucks available for transporting products.

The tire company’s factory in Gwangju will manufacture around 8,000 tires a day, 24 percent of normal production capacity. Its Gokseong plant, located in South Jeolla, will produce 10,000 tires a day, which is 31 percent of its normal levels.

“Shipments from the Gwangju and Gokseong plants are almost halted, except for a small number of tires needed to be supplied to new cars,” said a spokesperson for Kumho Tire. “We will monitor how the strike carries out and map out manufacturing plans based on that.”

Won Hee-ryong, minister of land, infrastructure and transport, said Wednesday that “the government is looking into losses of steel companies” and “issuing an executive order is the government’s last resort.”

An executive order was issued for 778 cement truckers on Nov. 29, forcing them back to work. Of them, 475 truckers returned to work as of Tuesday. Another 40 said they will, but can’t immediately. The government is checking on the others.

One cement trucker refused to return to work, and the Ministry of Land, Infrastructure and Transport reported the trucker to the police. The trucker's license will be suspended for up to 30 days. It will be revoked if the trucker doesn't comply for a second time.

“Truckers are returning to work, but to allow our economy to fully recover, it could be necessary to issue an executive order so truckers can make the right decision,” Won said. “A cabinet meeting to discuss the matter could be held today or tomorrow.”

Truckers hauling goods other than cement are also striking, but companies are finding additional drivers to make shipments possible.

Posco’s Pohang Steel Mill started shipping out products Wednesday, with truckers that aren’t under Cargo Truckers Solidarity driving the vehicles.

Hyundai Steel’s plants in Incheon, Pohang and Dangjin, South Chungcheong, started shipping out products Wednesday, also by non-unionized truckers. The company said it plans to ship out 50 percent of normal levels.

A total of 81 gas stations ran out of fuel as of 2 p.m. on Tuesday with fewer trucks to transport fuel, according to Korea National Oil Corporation. Although the number is still high, the figure fell by 15.6 percent from the day before.

Cement makers were able to ship out 90 percent of normal levels on Tuesday due to the executive order, but the Federation of Construction Associations announced it plans to jointly sue truckers that were on strike for obstructing business.

According to the business group, 785 out of 1,349 construction sites had to stop construction due to the strike halting deliveries of cement or steel bars.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]