"Temporary Halt Causes Hundreds of Billions in Losses: Corporate Emergency Amid COVID-19 Resurgence (Comprehensive)"

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 the number of COVID-19 confirmed cases at Sarang Jeil Church exceeded 300, and the government advised residents in the metropolitan area to refrain from going out, the area near Yoido Full Gospel Church in Seoul showed a quiet scene on the 18th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Changhwan 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.

According to the business community on the 18th, Samsung Electronics' COVID-19 Emergency Response Task Force (TF) notified employees the previous day, "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 requested all employees before the weekend holiday to "refrain from going out as much as possible and stay at home."

Samsung Electronics stepped up quarantine measures because COVID-19 has recently shown signs of re-spreading nationwide, causing confirmed cases within the company and triggering an emergency.

One subcontractor employee at Samsung Electronics' semiconductor plant in Hwaseong, Gyeonggi Province, 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 of the outbreak and is currently operating the production line and R&D campus normally.

LG is also on high alert as confirmed cases have occurred in its affiliates. One employee of the Korea Sales Headquarters at LG Electronics' Seoul Station Building was confirmed 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 responded by tracing the employee's movements, isolating and testing contacts, and closing the workplace.

The 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." Recently, employees at Hyundai Motor's Uiwang Research Center and employees of Hyundai Rotem within the same research center were confirmed positive. POSCO is also taking measures such as minimizing business trips and strengthening quarantine in accordance with the upgrade to social distancing level 2.

Major companies are conducting domestic sales and supply chain inspections along with strengthening quarantine measures. This is due to concerns over production disruptions caused by confirmed cases. Given the nature of manufacturing, if even one factory stops, damages 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."

Domestic companies in sectors already struggling, such as distribution, hotels, and travel, are taking drastic measures like reducing store operations to prevent additional damage from the resurgence of the epidemic. Many distribution companies, including Lotte Duty Free, Lotte Home Shopping, CJ ENM O Shopping division, GS Home Shopping, and Starbucks Coffee Korea, are switching back to remote work systems.

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