LG Factory Burns and Samsung Logistics Warehouse Also Hit... Intensifying South Africa Riots

Police are arresting looters at a shopping center in Bosluss near Johannesburg, the largest city in South Africa, on the 12th (local time).
[Image source=AFP Yonhap News]

[Asia Economy Reporter Lee Chun-hee] Recently, riots and looting have occurred in South Africa, and it has been reported that Korean companies LG and Samsung have suffered damages.

On the 13th (local time), according to local company expatriates in South Africa, damage was reported at Samsung's logistics warehouse in KwaZulu-Natal, located in the southeastern part of South Africa, which is one of the main sites of the unrest. Due to poor local security conditions, company officials have not yet been able to access the site, so the exact extent of the damage is still unknown. Samsung also has logistics warehouses storing products in various locations across South Africa.

However, the Samsung factory in Durban, a port city in KwaZulu-Natal, reportedly did not suffer damage as security was strengthened due to the nearby airport. The Durban Samsung factory is the only TV production plant in sub-Saharan Africa and has a production facility scale similar to LG Electronics' Durban factory.

The LG Electronics Durban factory, which was recently completely destroyed by looting and arson by rioters, had an initial investment of 20 million USD (approximately 22.9 billion KRW), and its annual production scale of LCD TVs and monitors was reported to be 50 million USD (approximately 57.3 billion KRW). Finished products and materials stored in the warehouse were looted, and equipment was burned, resulting in expected losses of tens of millions of dollars. The company is now in a position where it may decide to fully withdraw from the local business depending on future developments.

Recently, in South Africa, riots accompanied by looting have frequently occurred centered around KwaZulu-Natal, the hometown of former President Jacob Zuma, who was imprisoned on the 8th on corruption charges during his tenure.