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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Seoul, June 3 — A recent industrial accident at SPC Samlip’s Siwha plant has led to a complete halt in operations and could significantly impact the company’s earnings and credit profile, according to a report released by Korea Ratings (Korea Ratings Corporation, KRC).
The accident, which resulted in casualties, has triggered a work stoppage order from the Ministry of Employment and Labor on 8 of the 20 production lines at the facility. The remaining 12 lines have also been voluntarily shut down, effectively suspending all operations at the plant, said Gu Jung-won, analyst at KRC.
The Siwha facility is a core production hub for SPC Samlip’s bakery division, particularly for mass-produced bread products. Approximately 26% of SPC Samlip’s total (non-distribution) revenue is generated at this plant, with daily production valued at KRW 1.2 billion. The production lines subject to the official suspension alone account for KRW 300 million in daily output.
“While partial production is being reallocated to affiliate and partner plants, it remains unclear when about 30% of the suspended lines can resume operations,” KRC stated. “In addition to supply disruptions, the consumer-facing nature of SPC Samlip’s business raises the risk of brand trust erosion, which could further weigh on performance.”
The bakery business contributes approximately 70% of SPC Samlip’s consolidated operating profit, suggesting a heightened impact on profitability, the agency added.
However, the company retains moderate financial flexibility to absorb near-term losses. Since 2022, SPC Samlip has improved margins, reduced inventory pressure due to falling raw material prices, and maintained conservative capital spending, leading to a steady decline in net debt.
The accident is subject to the Serious Accidents Punishment Act, which came into effect in January 2022. The Ministry of Labor’s ongoing investigation may serve as a test case for evaluating SPC Samlip’s workplace safety governance and ESG compliance frameworks.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
