Business Community Tense Over Uncertainty... Fully Prepared for US Local Unrest and Other Contingencies

On the 4th, citizens are watching the vote counting situation of the U.S. presidential election in the waiting room of Seoul Station. Photo by Moon Honam munonam@

Preparing for Prolonged Chaos in the US Presidential Election

Restraining Large Events and New Market Entries

Possibility of Conservative Operations in Q4

[Asia Economy Reporters So-yeon Park, Chae-eun Koo] As significant confusion arises over the counting of votes in the US presidential election, South Korea's business community is also engulfed in uncertainty. With Democratic candidate Joe Biden currently leading, and President Donald Trump refusing to accept the election results and initiating legal battles, Korean companies are preparing for the worst-case scenario.

According to the business community on the 5th, domestic companies with operations in the US are establishing contingency plans amid concerns that major chaos is inevitable even after the vote count is completed. A business official said, "Companies operating factories in the US are making thorough preparations, such as strengthening security to prepare for potential unrest."

The business sector expects a conclusion as early as the weekend, but in the worst case, the confirmation of the winner could be delayed for up to a month, prompting preparations for a prolonged conflict. Given the ongoing COVID-19 second pandemic and lockdown measures, a situation where the US presidency is effectively vacant could cause turmoil in the global trade order and stock markets, keeping tensions high.

Uncertainty is expected to persist until the inauguration of the next president next year, and while various business scenarios are being reviewed, warnings have been issued to operate conservatively in the fourth quarter of this year. Kim Bong-man, Director of International Cooperation at the Federation of Korean Industries, advised, "The division within the US is severe, and gun sales are skyrocketing. While companies are somewhat prepared, since it is unclear what might happen, it is necessary to operate businesses conservatively for the time being." Another business official expressed concern, saying, "Not only economic policies but also issues such as North Korea's nuclear problem, US-China conflicts, and carbon emissions are all tied to the US election results, so until uncertainties are resolved, our companies will face an awkward situation where they can only watch and wait."

However, if Biden, who is currently leading, is confirmed as president, there is optimism that the value chains of trade among South Korea, China, and the US will be restored, positively impacting South Korea's export economy. It is also expected that Korean companies with competitiveness in solar power, electric vehicles, and batteries?sectors aligned with a 100% clean energy economy?will benefit.

Investments aimed at enhancing national competitiveness in the US, such as 5G infrastructure, are expected to remain valid regardless of who wins. Whether the Trump administration enters a second term or a new Democratic Biden administration takes office, the anti-Huawei policy stance is likely to continue. Accordingly, Samsung Electronics and its partners are still expected to gain indirect benefits in the 5G leadership race. Kim Yang-pyung, a senior researcher at the Korea Institute for Industrial Economics and Trade, stated, "The US-China trade dispute over advanced technology began during the Obama administration and has become a policy stance independent of the administration. Even if Biden is elected president, the policy stance will not change."

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