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  • Korean Companies in Europe, Nine out of Ten Have “Serious” Damage from COVID-19
    2020-03-30 hit 1256

    Korean Companies in Europe, Nine out of Ten Have Serious Damage from COVID-19

    - KITA conducted emergency survey of 80 companies Urgent to resolve sales decline and transportation difficulties caused by the spread of coronavirus -


    90 percent of Korean companies operating in Europe reported severe damage from COVID-19.

     

    According to the Urgent Survey on the COVID-19 Damage Status of Korean companies in Europe conducted by the Brussels Branch of the Korea International Trade Association (Chairman: Kim Young-Ju) for three days from March 25th to 27th, of 80 member companies to the Korea Business Association Europe, 51 percent said their damage is very serious, while 39 percent said somewhat serious. It indicates that 90 percent of the Korean businesses in Europe is suffering from COVID-19. 

     

    The survey shows that the companies are suffering mainly from ‘the sales decline due to a decrease in local demand’ (69%), followed by ‘the suspension of sales channels such as dealer shops and branches’ (58%), 'logistics and transport difficulties' (43%) and 'cancellation of exhibitions and meetings with buyers' (39%).

     

    43 percent of the respondents expected the COVID-19 pandemic to start easing in June and 28 percent forecast in May and most of them were concerned about the long-term damage. The businesses anticipated that their sales would drop by ‘10-20% in April’, ‘20-30% in May’ and ‘30-40% in June’ and the damage would be greater as the coronavirus continues to spread longer.

     

    The companies are responding to the situation with ‘adjustment and cancellation of production volume and existing orders’ (53%), ‘reduction of workforce’ (41%), ‘working on alternatives to logistics and transportation’ (25%), ‘requesting local government funding’ (24%), etc.

     

    As the urgent request for the Korean government, 24 percent of the companies said that they would like the government to resolve ‘logistics and shipping problems’ and 3 percent said ‘difficulties with customs’, with some mentioning ‘difficulties in business trips due to entry bans by the European Union’. 

     

    Park Yeon-woo, the head of Brussels Branch of the Korea International Trade Association, said, European countries strictly control not only business activities such as exhibitions, conferences and outdoor activities, but also daily activities in order to prevent the spread of coronavirus and it damages business operations, and added, Korean companies need to promote Untact Marketing such as video consultations and online public relations to be prepared for the prolonged coronavirus pandemic as well as telecommuting.


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