Korean Industry Faces 'Domino Shutdown' Crisis... LG Incheon Research Building Closure (Comprehensive)

[Asia Economy Reporters Hyewon Kim and Jihee Kim] The novel coronavirus disease (COVID-19) crisis is reaching a peak level of concern that it could trigger a 'domino shutdown' across domestic industries. Not only companies located in Daegu and Gyeongbuk, where confirmed COVID-19 cases are surging, but also symptomatic individuals are spreading nationwide, making production disruptions inevitable due to immediate workplace closures upon confirmed cases. Companies are busy identifying employees who had close contact with confirmed COVID-19 cases, and it has been found that there are quite a few cases currently under self-quarantine and undergoing COVID-19 testing.

◆Will domestic manufacturing plants face simultaneous shutdowns? Companies on high alert= According to the industry on the 24th, LG Electronics closed the research building for one day after an employee’s family member at its Incheon plant was confirmed positive for COVID-19.

An LG Electronics official said, "The employee’s test result has not yet come out," and explained, "We judged that proactive measures were necessary, so we disinfected the research building on the 22nd and decided to close it until the 24th." Research building employees worked from home that day, while the production and complex buildings operated normally. Depending on the employee’s test results, additional self-quarantine cases may arise.

Samsung Electronics temporarily closed its Gumi plant until noon on the 22nd after a confirmed COVID-19 case was found among employees, followed by disinfection measures. Meanwhile, a symptomatic individual appeared at the Suwon plant, where the headquarters is located, and is currently awaiting COVID-19 test results. An employee from the R4 (Digital Research Institute) purchasing team who returned from a business trip to Taiwan between the 11th and 14th voluntarily reported to the local health center after developing high fever and chills and has been tested. Accordingly, Samsung Electronics immediately sent coworkers on the same floor home the previous day and instructed all employees to stay at home until the afternoon of the 23rd.

Hyundai Motor Company is again on high alert at its Ulsan Plant 1. The plant was temporarily closed after an employee of its first-tier supplier, Seojin Industry, died from COVID-19. Hyundai Motor Ulsan Plant 1 is operating lines 1 and 2 in an emergency "component pitch" mode (running the conveyor belt with insufficient parts, leaving vehicle assembly slots empty). Currently, it holds about 1.5 days of inventory, and a decision on continuing component pitch operation or taking a day off will be made in an afternoon meeting. Hyundai-Kia Motors is individually contacting employees who have visited overseas regions with many confirmed COVID-19 cases (such as Japan) as well as Daegu and Gyeongbuk, informing them about home quarantine periods and unpaid leave policies.

Hyundai Steel closed the floor where a Pohang plant employee was confirmed positive and began disinfection. Twelve employees working in the same department were instructed to work from home and get tested. In addition, many companies are seeing a surge in employees undergoing testing due to COVID-19 symptoms, raising concerns that a confirmed case could lead to a simultaneous shutdown across the entire manufacturing sector.

Earlier, SK Hynix quarantined about 800 employees at its Icheon campus on the 20th after a new employee who had contact with a Daegu confirmed case and another employee showing pneumonia symptoms were identified. Both tested negative for COVID-19, reducing the number of people under self-quarantine to about 550. On the 6th, a GS Home Shopping employee was confirmed positive, leading to a live broadcast suspension and workplace closure.

◆Mandatory mask-wearing and one-direction seating in cafeterias...TF response level raised= As the government raised the infectious disease crisis alert to the highest level, 'serious,' companies have also quickly escalated their response levels through their internally formed task forces (TFs).

Samsung Electronics’ COVID-19 emergency response TF sent an 'urgent notice' text message to all employees, mandating mask-wearing on commuting buses, at workplace entrances and exits, and in elevators starting that day. Employees without masks are not allowed to board the shuttle buses. Etiquette compliance is also requested in company cafeterias. The manual includes specific guidelines such as mandatory mask-wearing while waiting for and receiving food, spaced seating, eating facing one direction without facing each other, and refraining from conversation during meals. Some affiliates have instructed pregnant employees to work from home.

LG Electronics, which has a four-level crisis response system internally, upgraded to the highest 'serious' level over the weekend and informed all employees to refrain from business trips between workplaces. From that day, LG Electronics completely banned external visitors except for regular employees and on-site contractors, sending a formal letter to logistics companies on the 21st requesting cooperation. Employees living in Daegu but commuting to the Gumi plant were instructed to work from home, and production workers were granted paid leave. An LG Electronics official said, "We are checking related equipment and networks to ensure smooth cloud access from outside in preparation for a possible increase in remote work."

LG Display prohibited employees and visitors residing in Daegu and Cheongdo from entering the workplace and granted paid leave to those employees. They are also identifying employees who visited the same locations as confirmed cases in Daegu and will grant paid leave if necessary. Additionally, internal and external events have been suspended, business trips discouraged, and virus spread prevention activities such as temperature checks and mask-wearing have been strengthened.

SK Group changed the method of measuring the temperature of people entering affiliate buildings from thermal cameras to individual measurements and partially modified the shared seating system to minimize employee movement. The restriction preventing reservations on the same floor for more than three days was lifted to encourage employees to sit on the same floor as much as possible. To reduce external contact, flexible work hours were introduced, starting work after 10 a.m.

POSCO, in addition to existing measures, has been implementing additional preventive actions since the 21st, including temporary closure of major internal and external recreational and welfare facilities. Group training sessions for partner company employees have also been postponed or canceled.

This content was produced with the assistance of AI translation services.