[Exclusive] Samsung and LG Electronics Introduce Work-from-Home for the First Time... Increasing COVID-19 Response Measures (Comprehensive)

Samsung and LG Electronics, which had not adopted remote work, eventually implement partial remote work for all employees except special cases like pregnant women
Most large companies including Hyundai Kia Motors, SK Innovation, and Hanwha Total already have remote work
Companies strengthen COVID-19 response manuals ahead of government social distancing level 3 upgrade

[Asia Economy Reporters Hyewon Kim and Changhwan Lee] Samsung Electronics is introducing work-from-home for all employees company-wide, excluding the semiconductor division, for the first time since the COVID-19 outbreak. LG Electronics has also decided to expand work-from-home to more than 30% of its employees.

According to industry sources on the 27th, Samsung Electronics has decided to conduct a pilot work-from-home program for employees in the set division for one month starting next month on the 1st, and is currently accepting applicants. A Samsung Electronics official stated, "With growing concerns over the resurgence of COVID-19, we will operate work-from-home on a trial basis for those who request it, review areas for improvement, and then decide on further implementation."

Samsung Electronics Introduces Work-from-Home for the First Time, LG Electronics Also Expands to Over 30%... Becoming a Corporate Trend?

Earlier this year, Samsung Electronics considered introducing work-from-home in some divisions such as Consumer Electronics (CE) but withdrew due to low demand. This is the first time since the COVID-19 outbreak that the company has decided to implement work-from-home at the company-wide level. Until now, Samsung Electronics allowed work-from-home or family care leave only for high-risk employees such as pregnant women or those with underlying health conditions.

With this measure, starting next month, employees in the CE, IT & Mobile (IM), Video Display (VD) divisions, as well as research and development (R&D) staff in Samsung Research, excluding the semiconductor division which operates 24/7, will be able to work from home. However, this applies only to tasks suitable for remote work such as design, marketing, and development. The Device Solutions (DS) division, responsible for semiconductors, will decide on implementation after reviewing the pilot results.

On the 21st, a COVID-19 case was confirmed at the LG Electronics R&D Campus in Seocho-gu, Seoul, leading to restricted access to the workplace. Photo by Jinhyung Kang aymsdream@

Not only Samsung Electronics but also LG Electronics has decided to expand the scope of work-from-home starting today. LG Electronics had previously allowed work-from-home only in special cases such as pregnant employees, those needing childcare, or returning from overseas business trips, but recently decided to expand work-from-home due to the rapid spread of COVID-19. An LG Electronics representative explained, "Although there may be some differences depending on the organization, overall, we will expand work-from-home to more than 30% to prevent the spread of COVID-19 and protect employees' health."

LG Group plans to issue a company-wide directive for all employees to work from home except essential personnel if the government raises social distancing to level 3. An LG Group official said, "Following government guidelines, we will apply strict social distancing measures such as allowing only about 30% essential personnel to remain on-site, enforcing work-from-home for all others, and banning group events." LG Chem and LG Display have already introduced rotational work-from-home.

SK Group companies such as SK Innovation, SK Telecom, and SK E&S have been operating work-from-home for all employees since mid-month. Hanwha Group started rotational work-from-home at some Hanwha Solutions sites on the 19th, and Hanwha Total has also been rotating work-from-home since the 20th. In addition, the adoption of work-from-home is increasing across industries including automotive, construction, and steel.

Major Conglomerates Strengthen Internal COVID-19 Response Manuals... Expanding Work-from-Home, Staggered Lunches, In-house Mask Production, Alternative Workspaces, and More Efforts to Prevent Infection

The business community is increasingly raising the level of COVID-19 response in preparation for a possible upgrade to social distancing level 3.

Major conglomerates such as Samsung, Hyundai Motor, SK, LG, and POSCO are working internally to significantly expand work-from-home in line with government guidelines to strengthen COVID-19 prevention. When social distancing level 3 is implemented, the government recommends that private companies have all employees work from home except for about 30% essential personnel. Samsung Electronics and LG Electronics, which had not introduced work-from-home for general office workers since the outbreak, are now making institutional changes. POSCO is reviewing the implementation of work-from-home for all on-site employees except factory shift workers in preparation for social distancing level 3. Airlines also plan to expand work-from-home except for positions that require on-site work.

Separate from changes in work style, on-site infection prevention is being further strengthened. Samsung Electronics and SK Hynix are focusing on enhancing infection control at semiconductor production plants that operate 24/7 year-round. Measures to reduce infection risk during meal times, when mask-wearing is not possible, are also notable. Hyundai Motor Group is implementing staggered meal times for the first time, as meal times are considered the highest risk for COVID-19 infection. Production and office workers will have different meal times to reduce congestion in cafeterias. At Hyundai Motor’s Ulsan plant, production workers eat from 10:50 to 11:30, and office workers from 11:30 to 12:10, reducing cafeteria crowding and maintaining social distancing, with permanent installation of partitions between seats. Additionally, research staff meal times will be divided into groups A to D, operating a four-shift system with 30-minute intervals between 11:30 and 13:30.

Hyundai Motor Group is also preparing for a prolonged COVID-19 situation by establishing an in-house mask production system since July, producing 800,000 masks monthly. These masks are not for sale and are supplied to Hyundai Motor Group employees and their families worldwide. To prepare for possible workspace closures due to confirmed cases, alternative work centers have been set up at Mabuk Training Center (Hyundai Motor) and Yangji Training Center (Kia Motors).

Suspension of Facility Operations, Ban on Gatherings, Business Trips, and Company Dinners... Supply Chain Management for Partners Also on High Alert

Corporate auxiliary facilities will be suspended for the time being. POSCO plans to suspend on-site daycare and all in-house training and workshops if social distancing level 3 is raised. Currently advised against, business trips, company dinners, and gatherings will be strictly banned. Samsung Electronics plans to strengthen its current level 2 manual to level 3, including prohibiting meetings of 20 or more people, maintaining 1.5 meters distance during meetings, and operating only 50% of seats on commuter buses.

Supply chain (value chain) management is also on high alert. The situation is worse for small and medium-sized enterprises supplying large corporations, raising concerns about production disruptions due to supply chain breakdowns. Major groups are currently reassessing their value chain status assuming the worst-case scenario and have begun revising manuals accordingly. A representative from one of the four major groups said, "If level 3 is implemented, we will activate backup plans tailored to the specific characteristics of each workplace to prevent further internal spread," adding, "We are also preparing for the unlikely event of a factory shutdown."

Kwon Hyuk-min, head of the Industrial Cooperation Team at the Federation of Korean Industries, said, "Companies are anxiously strengthening supply chain management to avoid problems with parts procurement again. Large corporations have systems in place, so the impact is somewhat less, but small businesses and self-employed individuals, lacking such systems, could be hit hard by the resurgence of COVID-19 affecting supply chain management."

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