The Korean Consulate General in Shanghai said Monday that 1,800 Chinese workers at the cotton mill in Xinhe, Chongming district in Shanghai have been holding seven officials since Friday, including the factory's chief executive officer, identified as Woo.

The workers imprisoned the officials and staged a sit-in to demand severance pay and overtime pay that they say is in arrears.

According to the Consulate General, several hundred Chinese workers in groups blocked the gate of the factory to prevent the Korean officials from leaving. During the process, some of the Koreans were beaten by workers.

H has been doing business for 10 years and set up a second cotton spinning factory two years ago. However, it has been preparing for liquidation due to a worsening management environment.

After being alerted to the situation, the Consulate General asked local police to protect the Koreans. It also asked the local government to mediate the situation and try to negotiate with the workers. Negotiations between the workers and Korean management are underway now.

Small and medium-size Korean businesses in China have been dealing with a tougher management environment lately, due to a new labor law that will strengthen protections for workers next year and heavy pressure by Chinese authorities on foreign processing firms.

(englishnews@chosun.com )