Nestlé has warned that it may have to close its factory in South Korea, following a 50-day strike that has cost the group millions of dollars.

President of Nestlé Korea, Sam Lee, said that the company’s concerns were shared by other foreign investors because Korean workers were demanding better pay and conditions from overseas companies.

The majority of the company’s 450-strong Korean workforce went on strike in July after it refused to meet union demands for an 11.7% pay rise - Nestlé offered 5.6%.

Meanwhile, South Korean truck drivers continued their two-week strike, extending the heavy losses caused by disrupted freight flows.