'Wuhan Risk' Grows for Korean Companies, Employee Repatriation and Business Trips Banned... Concerns Over Disruptions in China Operations

Samsung Forms Task Force for Wuhan Pneumonia Response and Installs Thermal Detectors at Worksites
SK Requires Employees with China Travel History to Work from Home for at Least Ten Days Even Without Symptoms
LG Bans Business Trips Across China and Orders Early Return of Travelers

[Asia Economy Reporters Kim Hyewon and Park Soyeon] As the novel coronavirus infection (Wuhan pneumonia) spreads not only throughout China but also worldwide, Korean companies are on high alert, quickly preparing countermeasures. A significant number of employees dispatched to China have returned to Korea and are currently under self-quarantine (working from home), and business trips to China have been virtually halted.

According to industry sources on the 28th, domestic companies with subsidiaries or factories in China, such as Samsung, SK, LG, POSCO, and Doosan, have established emergency response systems by creating and distributing manuals to respond to the novel coronavirus. Generally, companies have taken initial measures such as recalling dispatched employees, requiring remote work for those entering or leaving China, banning business trips, and installing thermal scanners. A group official stated, "The atmosphere before and after the Lunar New Year holiday has completely changed," adding, "The companies' response scenarios have also been strengthened in several stages."

Samsung Electronics immediately formed a task force (TF) at its headquarters and is sending preventive text messages to all employees while installing thermal scanners at each business site. A Samsung Electronics official said, "We have created group chat rooms at the factory or business site level to provide real-time notifications regarding the novel coronavirus."

SK Group, which has SK General Chemical operating in Wuhan, the outbreak's epicenter, recalled all dispatched employees before the closure of Wuhan Airport and recently mandated that employees with recent travel history to China work from home for at least 10 days upon returning, even if they show no symptoms.

POSCO, which also has a business site in Wuhan, has advised local employees to minimize movement within China and is currently reviewing the withdrawal of all expatriates in consultation with the government. A POSCO official stated, "As the Chinese government extended the Lunar New Year holiday period until February 2, the suspension of local factory operations has also been extended accordingly." Doosan Bobcat, which has a factory in Suzhou, China, has entered a forced leave period until February 8 in accordance with local government guidelines.

On the last day of the Lunar New Year holiday, the 27th, the fourth confirmed case of the novel coronavirus infection (Wuhan pneumonia) was reported in South Korea. On this day, a preventive notice related to Wuhan pneumonia was posted at Seoul Station. Photo by Moon Honam munonam@

Shinsegae International has decided to temporarily close its Shanghai subsidiary for the time being. The company explained, "There is one offline store each for Tomboy and BOB in Wuhan, which have been closed since the 24th, with the reopening date undecided," adding, "We plan to send masks from Korea for our local Chinese employees."

There is a general atmosphere of refraining from business trips to China for the time being. LG Electronics, which initially issued a ban on business trips to China, has now completely prohibited trips not only to Wuhan but throughout China starting today. SK Innovation has also recalled employees currently on business trips in Wuhan immediately and is minimizing business trips to other regions in China unless absolutely necessary. Cosmetic companies such as Amorepacific have issued internal notices to refrain from business trips to China and require employees to justify the necessity of trips to their department heads if needed.

KOTRA, which operates 21 trade centers in China, held an emergency countermeasure meeting chaired by President Kwon Pyung-oh on the morning of the same day, actively identifying difficulties faced by Korean companies operating in China and reviewing business plans. President Kwon stated, "We will soon decide whether to form a special task force in preparation for a prolonged situation." The Korea International Trade Association is comparing the current situation with the 2003 Severe Acute Respiratory Syndrome (SARS) outbreak and is assessing the potential long-term impact of the novel coronavirus on Korean companies' trade (exports and imports).