Automotive Industry's Appeal: "Blocked Overseas Business Trips Put the Brakes on Global Market Expansion"

106 Countries Restrict Entry from Korea... Overseas Business Trips and Exchanges Blocked
"Selective System Needed for Entry Simplification and Early Approval"

Vehicles produced at Kia Motors Gwangju Shipping Office near Pyeongdong Industrial Complex, Gwangsan-gu, Gwangju, are waiting to be shipped in mid-last month. (Photo by Yonhap News)

[Asia Economy Reporter Kim Ji-hee] The global market expansion of domestic automakers has hit a red light as overseas business trips have been blocked due to the novel coronavirus infection (COVID-19) crisis.

According to the Korea Automobile Manufacturers Association (KAMA) on the 10th, automakers are complaining about difficulties caused by entry restrictions imposed by various countries around the world. Not only overseas business trips but also exchanges with local employees have been blocked, making the operation of global regional headquarters difficult. As of 9 a.m. on the same day, a total of 106 countries and regions have imposed entry bans or strengthened entry procedures for travelers from Korea.

In particular, Hyundai Kia Motors, which operates factories in several countries including the United States, China, India, Brazil, the Czech Republic, and Turkey, is facing deep concerns. Hyundai Motor plans to deploy about 200 people locally to prepare for the production of the new i20 at its Turkey factory scheduled for July. However, since they cannot travel overseas, disruptions in production operations, equipment operation, and quality assurance are inevitable. The discovery of new industries through global cooperation expansion has also come to a halt.

Accordingly, the industry voices the need for a selective system that allows entry into these countries. It is pointed out that if a COVID-19 negative certificate is obtained, entry approval should be simplified through Korean embassies in each country, or early approval of entry should be granted for regions where overseas factories are located.

The essential quarantine measures to avoid the automakers’ biggest fear, factory "shut down (temporary suspension of operations)," are also a concern. As the government increased the public supply of masks from about 50% to 80% of daily production volume, securing mask supplies for on-site workers has become an urgent issue. Hyundai Kia Motors’ mask demand reaches about 106,000 pieces, and to prevent production disruptions due to unstable parts supply, they have also planned to support masks for partner companies. According to this plan, the required masks will reach 170,000 pieces on the 13th and 110,000 pieces on the 20th, but they have not yet secured the supply.

In addition, automakers unanimously agree that employment retention support should be strengthened in preparation for shutdowns or leaves of absence. Previously, Hyundai Motor and Ssangyong Motor paid 70% of the average wage during the COVID-19-related shutdown period. Due to continued payment of allowances while factories are closed, the companies’ cost burden is increasing. There are suggestions that the government should recommend the use of substitute holidays and relax the requirements of the employment retention support system in preparation for the prolonged COVID-19 crisis.

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