Middle East crisis deals blow to Seoul’s small manufacturers

When the United States and Israel attacked Iran in late February, Jeong In-sun, who works at a small plastics manufacturer in central Seoul’s Euljiro area, did not immediately realize that the war would reach her workshop. “The outer casings of clocks are made from plastic injection pellets, and since the Middle East crisis started, the prices of those materials have more than doubled,” the 60-year-old told The Korea Times Monday. Jeong’s case illustrates how Korea’s small manufacturers have taken a direct hit as the Middle East conflict chokes shipping routes through the Strait of Hormuz, disrupting supplies of key materials and driving up costs across the board. Tensions in the Middle East see no signs of easing despite a two-week ceasefire agreement, with a peace deal seeming elusive for now. “If this situation continues, we may have to suspend operations for the foreseeable future,” Jeong said. The crisis has placed small manufacturers like Jeong in a dilemma: Should they raise the prices of their products? Jeong said it is not a straightforward choice. “If we double our pri

Read Full Article