South Korean trucking strike ends, shipments resume at crucial Busan port

On June 15, South Korea’s unionized truckers ended their eight-day strike and returned to work, averting further disruption of shipments that included steel, autos, and cement. The cost of the nationwide strike, in lost output and unfilled deliveries, has been estimated at more than $1.2 billion.

In a test of the new government of President Yook Suk-yeol, the negotiations saw South Korea’s transport ministry agree to extend the truckers’ minimum freight rates and continue considerations of expanded guaranteed paid and fuel subsidies. While the agreements still need to be passed in parliament, markets have already responded positively and production has normalised for many companies affected by the strike, including Hyundai Motor and Hanil Cement.

Source:
1. South Korea truckers return to work after strike deal; shares rally, Reuters, June 15, 2022. Accessed June 20, 2022.