central bank-Samsung Electronics
Samsung Electronics' strike could cut S. Korean economy by 0.5 pct point: BOK
SEOUL, May 19 (Yonhap) -- The Bank of Korea (BOK) has estimated that a general strike at Samsung Electronics Co. could cut 0.5 percentage point off South Korea's economic growth this year, officials said Tuesday.
The central bank recently compiled a closed-door report on the matter and submitted it to the finance ministry, according to the officials.
The report estimated losses from the potential strike at around 30 trillion won (US$20 billion), noting it could take up to three weeks to restore production if the company's memory chip lines come to a complete halt.
Earlier, the BOK projected the South Korean economy would grow 2 percent in 2026. Asia's fourth-largest economy expanded 1.7 percent in the first quarter, marking the fastest growth in more than five years, driven by robust exports of semiconductors.
The report came as unionized workers announced plans to stage an 18-day large-scale strike starting Thursday, with more than 50,000 members expected to participate, demanding higher bonuses linked to the company's operating profit.
After weeks of standoff, Samsung Electronics' management and labor entered a second day of government-mediated talks aimed at averting a strike at the world's largest memory chipmaker.
This undated file photo shows the Bank of Korea in downtown Seoul. (Yonhap)
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