[Exclusive] Both SK hynix and Samsung Halted... Crisis Hits Semiconductor Factories

Twelve Ready-mixed Concrete Manufacturers in Yongin Halt Deliveries
Widespread Construction Delays Inevitable
Disruptions Also Hit Samsung Pyeongtaek Campus Project
KRCTU Insists on 6% Increase in Transportation Rates

Due to the strike by the Korea Ready-Mixed Concrete Truckers’ Union (KRCTU), all ready-mixed concrete pouring operations at the SK hynix semiconductor cluster construction site in Cheoin-gu, Yongin, Gyeonggi Province have been completely halted. With even the pouring schedule at the Samsung Electronics Pyeongtaek Campus construction site canceled, concerns are mounting that the ongoing strike could escalate into widespread damage across South Korea’s semiconductor industry sites.

According to the industry as of June 11, the strike by the KRCTU has entered its fourth day, resulting in the cancellation of all delivery schedules by ready-mixed concrete manufacturers supplying the SK hynix Yongin semiconductor cluster. Covering about 4.2 million square meters (1.27 million pyeong), the Yongin SK hynix semiconductor cluster is regarded as one of the country's largest private investment projects. The site is set to house four advanced semiconductor plants and various high-tech facilities related to semiconductor production. Approximately ten ready-mixed concrete manufacturers in Yongin, including Sungshin Ready-Mixed Concrete and Halla Encom, have been supplying to the project, but deliveries have been suspended due to the strike.

On the 8th, concrete mixer trucks were stopped at a concrete mixing company in Anyang City, Gyeonggi Province, as the Concrete Mixer Transport Labor Union went on strike demanding wage and collective agreement negotiations with management. Photo by Yonhap News Agency

Since the strike began, ready-mixed concrete manufacturers have been mobilizing all available resources, including company-owned mixer trucks, leased vehicles, and ready-mixed concrete transport operators affiliated with the Korean Confederation of Trade Unions’ National Construction Workers’ Union who are not participating in the strike, to maintain deliveries. However, industry representatives explain that more than 90% of ready-mixed concrete transport operators in the Pyeongtaek and Yongin areas belong to the KRCTU, which is leading the strike, and the proportion of company-owned mixer trucks is also low among local manufacturers, resulting in particularly severe disruptions to transport. An industry official stated, "As of June last year, the daily average ready-mixed concrete shipment volume in the Seoul metropolitan area was about 200,000 cubic meters, but currently, supply is less than 10% of normal levels."

On this day, the scheduled semiconductor concrete pouring at the Samsung Electronics construction site in Pyeongtaek, Gyeonggi Province was also canceled, signaling that the impact of the ready-mixed concrete transport union’s strike is spreading throughout the Pyeongtaek and Yongin semiconductor cluster construction sites. Previously, KRCTU members blocked the batch plant (BP) entrance at the Samsung Electronics Pyeongtaek construction site with their personal vehicles, causing two local manufacturers that had planned to deliver ready-mixed concrete to halt shipments, which resulted in the cancellation of pouring operations. Due to the tightly scheduled nature of semiconductor facility construction, delays in ready-mixed concrete pouring can have a cascading effect on subsequent processes, potentially leading to uncontrollable damage, according to industry sources.

KRCTU launched the strike on June 8, demanding an increase in ready-mixed concrete transport fees in the Seoul metropolitan area (Seoul, Gyeonggi, Incheon). On June 9, under mediation by the Ministry of Land, Infrastructure and Transport, the KRCTU and ready-mixed concrete manufacturers reached a tentative agreement to raise the transport fee by KRW 4,200 (5.5%) per trip. However, of the 7,517 KRCTU members in the metropolitan area, 7,222 (96.1%) participated in the vote, and 4,931 (68.3%) voted against the proposal, resulting in its final rejection. As the KRCTU continues to insist that the transport fee in the metropolitan area be raised by around 6% to match the Daejeon region, expectations are growing that negotiations will be prolonged.

A KRCTU representative stated, "Since the tentative agreement was rejected by union members, we plan to re-enter negotiations with the management," adding, "The strike will continue until we reach an agreement that the members can accept."

This content was produced with the assistance of AI translation services.