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SEOUL—South Korea asked Korea Express Co., the nation’s
largest logistics company, and other shippers to pay
more for road haulage to end a drivers’ strike that has
brought the country’s ports to a near standstill.
“We need
a prompt resolution for this issue as unrest is growing
among the people amid a difficult economic situation and
slowing imports and exports,” Ministry of Land,
Transport and Marine Affairs Minister Chung Jong Hwan
told transport-company executives in a meeting Monday,
according to a statement on the ministry’s web site.
Exports
from South Korea, Asia’s fourth-biggest economy, have
slumped to 22 percent of normal levels because of
disruptions caused by truckers striking over surging
fuel costs. The stoppages have added to pressure on
President Lee Myung Bak, whose popularity has plunged
over the resumption of beef imports from the US.
Drivers
in the construction industry have also walked out,
causing work at more than 90 percent of the country’s
building sites to stop, the Korea Construction Workers
Union said in an e-mailed statement Monday.
Truckers
represented by the Korea Cargo Workers Union stopped
moving freight nationwide from June 11. The dispute has
affected $1.69 billion of exports and $1.78 billion of
imports as of Sunday, according to the Ministry of
Knowledge Economy.
Hyundai
Motor Co., South Korea’s biggest automaker, said Sunday
shipments of finished vehicles in the local market were
only half the normal levels. Exports were largely
unaffected. Truckers have also blocked gates at plants
operated by Posco, the nation’s biggest steelmaker.
The
Korean Confederation of Trade Unions, an umbrella group
including the unions of Hyundai Motor and other South
Korean carmakers, is also threatening a nationwide
strike over President Lee’s government’s policies,
including the resumption of US beef imports, the
privatization of state-run utility firms and surging
inflation.
South
Korea’s entire Cabinet, led by Prime Minister Han Seung
Soo, last week offered to resign amid a nationwide rally
against the reopening of US beef imports. The
resignations haven’t officially been accepted yet.
Lee in
April agreed to lift a ban imposed to prevent the
possible spread of mad cow disease to win support from
US lawmakers for a wider free-trade accord between the
US and South Korea. The resulting public backlash cut
his approval rating in half. (Bloomberg) |