"Stopping Means Hundreds of Billions in Losses" Companies on Alert Amid COVID Rebound, Must Prevent 'Shutdown'

COVID-19 Resurgence Triggers Emergency Response at Samsung, LG, Hyundai Motor, and Other Companies
Strong Recommendations to Strengthen Quarantine Measures and Avoid Visiting High-Risk Areas

As confirmed cases of the novel coronavirus infection (COVID-19) are rapidly increasing, on the morning of the 18th, quarantine officials are conducting disinfection work at Yoido Full Gospel Church in Yeongdeungpo-gu, Seoul.
[Image source=Yonhap News]

[Asia Economy Reporters Hye-seon Lim, Seon-ae Lee, Chang-hwan Lee] As fears of a second wave of the novel coronavirus infection (COVID-19) grow, major companies are making every effort to prevent shutdowns. Companies are strengthening quarantine measures and actively responding by advising employees to refrain from visiting high-risk areas.

Domestic companies in sectors already struggling, such as distribution, hotels, and travel, are taking drastic measures like reducing store operations to prevent additional damage caused by the resurgence of the epidemic.

According to the business community on the 18th, Samsung Electronics' COVID-19 Emergency Response Task Force (TF) notified employees the previous day, stating, "If you have recently visited locations where group infections have occurred, such as Sarang Jeil Church in Seoul or the Starbucks Paju Yadang Station branch, please report immediately." Samsung Electronics had also urged all employees before the weekend holiday to "avoid going out as much as possible and stay at home."

Samsung Electronics stepped up quarantine efforts because COVID-19 has recently shown signs of spreading nationwide again, with confirmed cases appearing within the company, triggering an emergency.

At Samsung Electronics' semiconductor plant in Hwaseong, Gyeonggi Province, one subcontractor employee was confirmed positive for COVID-19 on the 14th, and on the same day, one employee at the Seoul Seocho R&D Campus was also confirmed positive. Samsung Electronics immediately conducted emergency disinfection and tested employees who had been in contact with the confirmed cases on the day the cases were identified, and is currently operating the production line and R&D campus normally.

LG is also on high alert after confirmed cases appeared in its affiliates. One employee at LG Electronics' Korea Sales Headquarters in the Seoul Station Building tested positive for COVID-19 on the 16th. On the same day, a confirmed case was reported at LG Display's Paju plant in Gyeonggi Province. The company quickly traced the movements of the infected employees, quarantined and tested contacts, and closed the workplace as part of a swift response.

Hyundai Kia Motors Group also sent text messages to employees over the weekend urging them to "refrain from using high-risk facilities and other multi-use facilities." POSCO has taken measures such as minimizing business trips and strengthening quarantine in response to the elevation of social distancing to Level 2.

Major companies are also conducting domestic sales and supply chain inspections alongside enhanced quarantine measures. This is due to concerns over production disruptions caused by confirmed cases. Given the nature of manufacturing, if even one factory stops, losses can range from hundreds of billions to thousands of billions of won.

A business community official said, "If the production line stops even once due to COVID-19, the damage becomes enormous," adding, "Thorough prevention is necessary to avoid production disruptions."

Distribution companies are also returning to remote work systems. Lotte Duty Free, which has been implementing one week of remote work per month, will start biweekly remote work for two weeks from the 18th. Domestic and overseas business trips and employee gatherings have also been banned. On the afternoon of the 17th, the company issued an urgent notice asking employees to refrain from traveling to Seoul and Gyeonggi areas where COVID-19 cases are rapidly increasing.

Home shopping companies have also unanimously decided to switch to remote work. Lotte Home Shopping, CJ ENM O Shopping division, and GS Home Shopping will have all employees except those involved in live broadcasts and emergency tasks work from home. The duration of remote work has not been set. Home shopping companies plan to maintain remote work until the COVID-19 situation stabilizes and further notice is given.

The food service industry, facing the resurgence of COVID-19, has seen confirmed cases among employees of several dining brands, and confirmed cases visiting stores in Seoul and Gyeonggi have led to business suspensions, strengthened quarantine measures, and reduced seating space within stores.

Starbucks Coffee Korea, in line with the elevation to social distancing Level 2, has been operating with at least a 30% reduction in seating at all stores in Seoul and Gyeonggi since the 16th. Although reduced store operations inevitably lead to decreased sales, Starbucks has stated it will do everything possible to prevent the spread of COVID-19. Additionally, the Starbucks Paju Yadang Station branch, where a recent cluster infection occurred, will suspend operations until the 21st.

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