South Korea races to prevent Samsung strike amid economic fears

South Korea is closely monitoring all options to avoid an escalating situation at Samsung Electronics- the country’s one of the world’s largest information technology and consumer electronic companies by revenue-and to mitigate any damage if a strike occurs, its prime minister stated on Sunday.

According to Reuters, the world’s largest memory manufacturer and its South Korean labor union will resume talks on Monday, aiming to alleviate concerns over a highly unruly strike at the tech giant which accounts for nearly a quarter of the country’s exports.

In this connection, Prime Minister Kim Min-seok shared his remarks after a meeting with ministers: “Just one day of suspension at Samsung Electronics' semiconductor factory is expected to incur direct losses of as much as 1 trillion.”

"What is more concerning is that a temporary pause on semiconductor manufacturing lines lead to months of inactivity.”

The company accounts for 22.8% of South Korea’s exports and 26% of the local market. On the other hand, Samsung employs more than 120,000 people and is working with 1,700 suppliers, Kim stated in his statement.

Notably, a provisional order is crucial to be invoked by the labour minister if the government determines a dispute could cause severe adverse effects on the economy or daily public life.

It is pertinent to take all industrial action which is then suspended for 30 days while the National Labor Relations Commission conducts alternative dispute resolution. 

The union is seeking to negotiate in good faith to reach a mutually beneficial agreement with management.