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 -
percent of Korean companies operating in Europe reported severe damage from
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.
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'
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.
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’.
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.”