"Air Travel Expected to Normalize by Year-End, Performing Arts Forecasted to Return to Normal Next Year"

KCCI, One-Year Impact Survey of the Industry Amid the COVID-19 Crisis

Prospects for Normalization of Business Activities by Major Industry

[Asia Economy Reporter Choi Dae-yeol] Amid significant damage to major industries due to COVID-19 last year, a survey revealed that sectors such as aviation, travel, and business services are expected to recover only around the end of this year.

On the 31st, the Korea Chamber of Commerce and Industry conducted a survey of 302 domestic companies regarding the impact of the COVID-19 crisis. The results indicated that the refining sector is expected to normalize business activities around the second quarter of this year, benefiting from economic recovery and increased outdoor activities. This was the fastest recovery timeline among the surveyed sectors, with most others expected to return to normalcy only after the third or fourth quarter.

Responses indicated that the home appliance and construction industries would recover after the third quarter, while aviation, travel, and business services would likely recover in the fourth quarter. The performing arts and cultural sectors, which were hit hardest by social distancing measures, are expected to resume normal operations only after next year.

Last year, three-quarters of the respondent companies reported suffering damage due to COVID-19. Additionally, 8.3% of companies stated that their survival was threatened. Conversely, about 14.6% said the situation was helpful, and 1.3% considered it a good opportunity.

On the 29th, access control tape was placed around Hunryeonwon Park in Jung-gu, Seoul. The Korea Disease Control and Prevention Agency Central Disaster and Safety Countermeasures Headquarters announced that as of midnight, there were 469 new confirmed cases of COVID-19, bringing the total to 77,395. Photo by Moon Honam munonam@

Among the companies that suffered damage, about four out of ten implemented emergency management, mainly due to a sharp decline in sales. As a result, the most common response was cost-cutting measures such as reducing wages, followed by leave of absence, temporary shutdowns, and workforce reductions. This indicates that salary cuts or layoffs were among the first measures taken when difficulties arose.

Approximately seven out of ten large and medium-sized enterprises are preparing for changes in the business environment following the COVID-19 crisis, whereas only about half of small and medium-sized enterprises are doing so. When asked about the key variables that will determine business performance this year, 36.4% cited COVID-19 vaccine distribution and immunity formation as the most important, followed by interest rate and exchange rate fluctuations, technological paradigm shifts, and domestic policy trends.

Regarding the government's quarantine response, 57.7% of respondents evaluated it as appropriate, while 42.3% considered it inadequate. The most needed policy was financial and tax support, chosen by 64.2%, followed by employment retention support, regulatory improvements, and immigration facilitation.

Kang Seok-gu, head of the Industrial Policy Team at the Korea Chamber of Commerce and Industry, stated, "If last year was a time to worry about survival, this year is the time to continue crisis recovery policies while expanding the foundation for future growth." He added, "We must actively implement measures in line with the era's trends, such as integrating non-face-to-face and online trends into traditional industries, spreading eco-friendly practices, and reorganizing global value chains (GVC)."

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