Global Companies Issue 'Korea Business Trip Ban' Amid COVID-19 Spread

Nestl? bans business trips for over 290,000 employees worldwide

Goldman Sachs bans business trips to Korea

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] As the novel coronavirus infection (COVID-19) spreads worldwide, more global companies are refraining from overseas business trips. These companies are actively encouraging the use of video conferences instead of business trips, leading to analyses that "coronaphobia" will bring changes to the business environment of global companies.

According to U.S. local media such as The Wall Street Journal (WSJ) on the 26th (local time), Swiss multinational food company Nestl? has suspended all overseas business trips until March 15. This applies to all of its approximately 290,000 employees worldwide. Among major multinational companies, Nestl? is the first to ban overseas business trips for all employees.

In Japan, where confirmed cases are increasing, food manufacturer Nissin has banned domestic and overseas business trips until March 11. It also instructed all approximately 3,000 employees in Japan to work from home. According to the Nihon Keizai Shimbun, if commuting to the office is unavoidable, employees are advised to avoid traveling during rush hours when public transportation is crowded.

The ban on business trips by global companies is concentrated in regions where the virus is rampant, such as China, Korea, Japan, and Italy. U.S.-based investment bank Goldman Sachs was the first global financial company to impose travel restrictions on Korea. Goldman Sachs also issued a two-week self-quarantine guideline for employees who have visited Korea and northern Italy.

Accounting firm EY Global has also banned business trips to Korea and Japan until April 1. Business trips to Greater China, including mainland China, Hong Kong, and Macau, are banned indefinitely.

U.S. chemical company Dow has issued official guidelines urging Korean employees to refrain from overseas business trips, while British aircraft engine manufacturer Rolls-Royce has decided to postpone a planned visit by its headquarters executives to Korea next month.

Instead of business trips, remote work and video conferences are rapidly taking root in business sites. WSJ reported that Basis Set Ventures, a venture capital fund based in San Francisco, is conducting its work through remote video conferences instead of business trips.