Lotte, Shinsegae, CJ Hold Emergency Meeting... Preparing for Aftermath Impact on Export Companies

"Korean Image Decline Raises Concerns Over Negative Impact on K-Wave"
Concerns Among Raw Material Importing Companies Due to Exchange Rate Drop

Major distribution companies such as Lotte, Shinsegae, and CJ Group, along with food and cosmetics export companies, held emergency status check meetings by affiliate on the 4th to prepare for any possible aftershocks following the declaration and subsequent lifting of martial law.

President Yoon Suk-yeol declared martial law, and on the 4th, citizens gathered in front of the National Assembly in Yeouido, Seoul, urging the lifting of martial law. Photo by Kang Jin-hyung

Lotte Group stated, "We held meetings by affiliate to assess the situation and are closely monitoring the potential impact on each industry." The Lotte distribution sector held an inspection meeting chaired by Vice Chairman Kim Sang-hyun to review all distribution affiliates, and the chemical sector also checked whether the declaration and lifting of martial law caused any disruptions to business operations.

Shinsegae Group held an emergency inspection meeting led by the Management Strategy Office to understand and respond to the overall situation of the group companies amid sudden environmental changes and external instability.

CJ Group also held management meetings by affiliate on the same day to discuss the ripple effects of the martial law situation on exchange rates, stock prices, and domestic demand. CJ Logistics held an emergency inspection meeting chaired by Yoon Jin, Head of the Korea Business Division, to review operational status and ordered thorough measures to ensure no disruption to services. CJ Logistics plans to focus on monitoring economic conditions and financial market trends and prepare corresponding response strategies.

Export companies in the food and cosmetics industries also took proactive measures as they received concerned inquiries from some overseas buyers. The management of Korea Kolmar, a cosmetics original design manufacturer (ODM) specialist, held an urgent issue review meeting with the North American Technology Sales Center in New Jersey, USA, chaired by Vice Chairman Yoon Sang-hyun. A Korea Kolmar official explained, "We received many inquiries from overseas clients worried about the situation in Korea," adding, "Through the meeting, we shared the current situation and conveyed the message that work will proceed without disruption." Amorepacific stated, "Domestic and overseas operations are running normally without significant issues, but the company is monitoring potential aftershocks as a precaution."

Orion, whose overseas business accounts for more than 50% of sales, reported no significant impact so far. An Orion official said, "Our overseas subsidiaries operate direct sales in each country, so the situation is no different from usual, and there are no special issues with exports from Korea at this time." Nongshim also produces products in the U.S. and other countries, so it is known that there is little impact related to exports. Samyang Foods held a meeting on the day to check export status but stated there were no particular issues. Samyang Foods produces Buldak Bokkeum Myun domestically and exports it overseas.

Most food companies import raw materials, so if the exchange rate rises (won value falls), costs increase accordingly. Some express concern that the martial law situation could damage Korea's image and have long-term negative effects.

KT&G, which is increasing overseas cigarette sales, also held an urgent management meeting early in the morning to discuss the impact of exchange rates. A company official said, "KT&G continues overseas business as usual and is preparing for the impact of this situation," adding, "We will continue to focus on normal business activities going forward."

Meanwhile, Coupang, whose parent company is listed on the New York Stock Exchange, had staff on emergency standby until early morning but is now focusing on normal operations after the lifting of martial law. Around 2 a.m., Coupang sent an internal email notice stating, "The martial law and martial law command proclamation (No. 1) are unrelated to company operations and economic activities," and urged, "Employees and partners are requested to carry out their daily work as usual." It also added, "The company is closely monitoring the current situation and will share updates with employees if necessary."

However, on the same day, a screenshot of a push notification titled "Coupang is watching for an opportunity" with the message "Timing for ordering daily necessities in preparation for martial law. (Advertisement) Check the products you have bookmarked" was posted on an online community, drawing criticism. It was confirmed that this notification was not sent by Coupang but by a third-party discount notification app. Coupang officially stated, "This was done independently of our company, and after fact-checking, we will issue a strong warning and take necessary measures."