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Strike Poses Risk to Korea Economy as $1.2 Billion Disrupted

  • Impact on supply chains grows as trucker strike enters 7th day
  • Posco curbs output, petrochemical industry sees major impact
A Posco steel mill in Pohang.

A Posco steel mill in Pohang.

Photographer: SeongJoon Cho/Bloomberg
Updated on

The risk to South Korea’s economy and global supply chains is growing as a nationwide trucker strike widens, curbing output at top steelmaker Posco and causing increasing damage to the petrochemicals sector.

The Ministry of Trade, Industry and Energy estimates that the auto, petrochemical, steel and other key industries have seen production disruptions worth about 1.6 trillion won ($1.2 billion). It said in a statement Monday that the impact from the stoppage will be more severe this week because many of the companies have reached storage limits for their products.