South Korean steelmaker POSCO said on Sunday it will shut some of its facilities in the country due to a shortage of places to store finished products that are not shipped due to a strike by truckers demanding higher wages as fuel prices rise.
POSCO is tracking automaker Hyundai Motor which cut production lines as a strike by thousands of truckers disrupted cargo transportation in the country's industrial centers and major ports.
A spokesperson for POSCO said, "Some production at our Pohang steel plants will be suspended and we are not yet sure how long this suspension will last." He added that the suspension will be effective from Monday.
The decision came as the government and the Cargo Truckers Solidarity union held their fourth round of meetings to find a compromise and end the strike that began on June 7.
South Korea is a major supplier of semiconductors, smartphones, automobiles, batteries and electronics. The strike deepened uncertainty over global supply chains already disrupted by China's strict COVID-19 restrictions and Russia's invasion of Ukraine.
As ports around the world grapple with supply bottlenecks a slowdown in chip manufacturing, petrochemicals and automobiles threatens South Korea's major exports and consumer inflation in Asia's fourth-largest economy is at a 14-year high.
Truckers are demanding an extension of subsidies that will expire this year guaranteeing minimum wages as fuel prices rise.
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