COVID-19 Travel Restrictions Cause Domino Effect of Canceled Overseas Investment Attractions by Local Governments... Hannover Messe Germany Postponed to July

[Asia Economy Reporters Kim Hyewon and Lee Dongwoo] As the number of countries restricting entry of Koreans due to the spread of the novel coronavirus infection (COVID-19) has increased to 96, major overseas investment attraction events promoted by not only leading domestic companies but also the government have been canceled or postponed indefinitely in large numbers.

According to the business community and local governments on the 5th, overseas event schedules of the Daegu-Gyeongbuk local government investment attraction task force (TF), which were planned from this month through May, have all been postponed.

The Gyeongnam real estate project investment attraction TF, which was scheduled to be held next week in Vancouver, Canada, and Los Angeles, USA, with North American investors attending, has been postponed indefinitely without setting a new date. The Daegu Free Economic Zone Authority’s European investment attraction TF events, scheduled for May in Vienna, Austria, and London, UK, have been completely canceled.

In addition, events prepared for months by local governments in Paris, France (Jeju), Silicon Valley, USA (Chungbuk and Gyeonggi-do), Tokyo, Japan (Gwangju), and Beijing, China (Masan) have all been postponed until the second half of the year. These events will either be rescheduled after the COVID-19 situation calms down or canceled with alternative projects planned for the second half of the year. Each local government has decided to respond urgently through telephone consultations only for cases where investment declarations are highly likely. The '2020 Hankijin Machinery and Plant Equipment Middle East Market Development Group,' which was to be dispatched to Dubai and Kuwait from the 21st to 27th with participation from about ten small and medium-sized enterprises, has also been postponed indefinitely.

In the case of private companies, not only existing overseas projects but also securing new clients and large-scale marketing of new products have effectively come to a halt. Events such as the Hannover Messe in Germany, which many large companies including LG, Doosan, and LS Group have actively used as a venue to showcase their latest technologies to potential buyers, have been postponed until July, causing marketing plans prepared for a year to fall through.

Samsung Electronics has decided to quietly launch its ambitious '2020 QLED 8K TV' this year in overseas regions such as China, Europe, and Latin America without separate events. Events have already been skipped in Korea and North America, with pre-sales underway. LG Electronics has completely canceled the 'LG InnoFest,' a key marketing event and new product launch held regionally in Asia, Africa, Europe, and Latin America starting this month. SK Hynix has refrained from attending overseas exhibitions or conferences hosted by global clients in accordance with its internal guideline to 'avoid meetings or events with more than 10 people' due to the recent COVID-19 situation.

Hyundai Motor Group’s Genesis brand has been unable to set the launch schedule for its biggest hit, the GV80, which was planned to be produced at about 2,000 units monthly and introduced to the North American market in the first half of the year. LG Chem planned to hold a groundbreaking ceremony for a joint venture (JV) electric vehicle battery plant with GM in Ohio, USA, in July or August, but the event’s feasibility has become uncertain as business exchanges such as overseas business trips between the two companies have become difficult. Construction companies are also facing difficulties as they cannot send key personnel to plant sites under construction in the Middle East, causing delays in construction periods and missing opportunities to participate in large-scale orders.

Jung Bongho, head of the Regional Cooperation Team at the Federation of Korean Industries, predicted, "The longer the COVID-19 situation prolongs, the more the national image will deteriorate, and both companies and the government may be placed at a disadvantage when promoting future new projects." Hong Seongil, head of the Economic Policy Team at the Korea Economic Research Institute, also said, "Due to the spread of COVID-19, domestic companies are facing increasing difficulties as global buyer meetings and local factory management are restricted," adding, "If the situation continues, there is a high risk that domestic companies’ global businesses will shrink."

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