SEOUL, May 17 (Reuters) - South Korea will pursue all

options, including emergency arbitration, to avoid a labour

strike at the country's biggest employer Samsung Electronics ( SSNLF )

and to minimise any damage if one does occur, its

prime minister said on Sunday.

The world's largest memory chip maker and its South Korean

labour union will resume pay talks on Monday with a government

mediator, in a move that could ease concerns over a potentially

disruptive strike at the tech giant that accounts for nearly a

quarter of the country's exports.

"Just one day of suspension at Samsung Electronics' ( SSNLF )

semiconductor factory is expected to incur direct losses of as

much as 1 trillion won ($667.68 million)," Prime Minister Kim

Min-seok said after an emergency meeting with ministers on

Sunday.

"What is more concerning is that a temporary pause on

semiconductor manufacturing lines leads to months of

inactivity," Kim said, adding there were worries about economic

damage ballooning to as much as 100 trillion won if materials

had to be disposed of due to a strike.

An emergency arbitration order, which can be invoked by the

labour minister if the country deems a dispute is likely to harm

the economy or daily life, immediately prohibits industrial

action for 30 days while the National Labor Relations Commission

conducts mediation and arbitration.

It has rarely been invoked and would represent an

extraordinary step for a union-friendly administration.

The union said it would negotiate in good faith to reach an

agreement with management.

Samsung accounts for 22.8% of South Korea's exports and 26%

of the domestic stock market, employing more than 120,000 people

and working with 1,700 suppliers, Kim said.

($1 = 1,497.7300 won)