'Great Chaos' Korean Companies Entering Haiti Lay Off 3,500 Employees

[Asia Economy Reporter Jeong Hyeon-jin] S&H Global, a local subsidiary of a Korean company operating one of the largest textile factories in Haiti, a Caribbean island nation, announced a large-scale layoff, AP News reported on the 2nd (local time).

[Image source=Reuters Yonhap News]

According to the report, S&H Global stated in a press release that it will shut down one manufacturing facility at its Haiti textile factory and lay off 3,500 workers. The company cited issues such as export shipment delays and order cancellations caused by strikes and social unrest as reasons. As a result, customers have decided to source from other factories in the Caribbean and Central America regions.

Haiti, which has experienced ongoing political and social turmoil and economic difficulties, plunged into severe chaos following the assassination of President Jovenel Mo?se in 2021. Last year, after the government announced a fuel price hike, citizens protested, and armed gangs took to the streets daily, causing riots. In September last year, Korean diplomatic authorities expressed concern over the situation in Haiti and advised Korean residents to evacuate to neighboring countries.

S&H Global is a local corporation established by SeAH Sangyeok, a Korean medical manufacturing and export company, when it built a textile factory in Haiti in 2012. At that time, the company announced an investment of over 70 million USD (approximately 86 billion KRW) to employ 20,000 people locally.

AP reported that "this industrial complex accounts for the largest share of private sector employment locally," and that this announcement comes amid worsening poverty and hunger issues throughout Haiti.

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