Samsung Electronics strike could cut growth by up to 0.5percentage points

The Bank of Korea reported to the government that if the total strike announced by the Samsung Electronics union goes ahead, South Korea's growth this year could fall by up to 0.5 percentage points. The strike was announced for 21 through 18 for a period of. The report covered the potential impact of disruptions to Samsung Electronics production on the country's economic figures.

The Bank of Korea submitted the report at a market situation review meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol on 14. This followed the government's request earlier this month for the Bank of Korea to analyze, under different scenarios, the impact of a Samsung Electronics strike on macroeconomic indicators. The report was used as material for a government meeting.

The report also included an estimate that losses from semiconductor production disruptions could reach 30 trillion won. It assumed that it would take an additional 3 weeks to return production lines to normal after the strike ended. The calculation included not only the strike period but also the recovery period.

The Bank of Korea report was also submitted to the Presidential Policy Office and other bodies. The Blue House said that receiving reports from the Bank of Korea is part of its regular work. This means that the government, too, has examined the impact of a Samsung Electronics strike on economic indicators.

Under mediation by the National Labor Relations Commission, which is affiliated with the Ministry of Employment and Labor, the Samsung Electronics union 2round of post-mediation 19will continue through the deadline. Post-mediation is a procedure for revisiting and reconciling issues between labor and management. The mediation process is continuing ahead of the announced general strike.

The court has put a stop to the 21general strike announced by the Samsung Electronics union. The Civil Division of the Suwon District Court 31ruled that 18it partially granted an injunction filed by Samsung Electronics against the Samsung Electronics branch of the Samsung Group Super-Majority Union and the National Samsung Electronics Union, among others, seeking to prohibit unlawful industrial action. The court's decision could lead to changes in how the general strike is carried out.