Electronics Industry Misses Out on Olympic Boom

Japan, Uncertainty Over Normal Hosting
Amid Overlapping 'Strengthened Entry Restrictions on Korea'

[Asia Economy Reporter Dongwoo Lee] Amid uncertainties over the normal hosting of the '2020 Tokyo Summer Olympics' due to the spread of the novel coronavirus infection (COVID-19), the electronics industry has also turned red as Japan's strengthened entry restrictions on Koreans overlap. The electronics industry, which aimed to expand the base of the 8K TV market this year thanks to the Olympic boom, is expected to inevitably revise its strategy due to the COVID-19 variable.

According to the electronics industry on the 6th, as the number of COVID-19 confirmed cases in Japan exceeded 1,000, attention is being focused on whether the Olympics will be held. This is because the more confirmed cases increase in Japan, the stronger the possibility of postponing the Olympics becomes.

Earlier, the electronics industry took preemptive measures considering that premium TV sales increase in years when large-scale sports events like the Olympics are held.

Samsung Electronics signed a contract last year to supply 5G communication equipment to Japanese mobile carrier KDDI and started promotional activities last month at 'Galaxy Harajuku' located in Tokyo, Japan, as an Olympic sponsor company. LG Electronics also prepared for the Olympic boom by launching the 8K organic light-emitting diode (OLED) 'LG SIGNATURE OLED 8K' last year. LG Electronics had planned to actively promote itself as the OLED TV leader through the Tokyo Olympics this year.

However, as COVID-19 continues to spread worldwide, there are forecasts inside and outside the industry that this year's global TV sales will inevitably be hit by the postponement of the Olympics. Market research firm IHS Markit analyzed that even if COVID-19 calms down within the first quarter of this year, the global TV market could shrink from the originally forecasted minus 5% to minus 9%.

To make matters worse, Japan's strengthened entry restrictions on Korea due to the spread of COVID-19 have also overlapped. Samsung Electronics and LG Electronics explained that there is no immediate damage as they have restricted overseas business trips themselves due to the global spread of COVID-19 and this measure was implemented. However, they predicted that if such measures are prolonged, it could inevitably hinder local buyer meetings and matters requiring detailed consultations.

An electronics industry official said, "Since the postponement of the Olympics has not yet been decided, it is not the stage to discuss specific strategy changes, but if the postponement becomes a reality due to the impact of COVID-19, it is expected to have some effect on global sales."

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