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COVID-19 outbreak to hurt South Korea's exports Updated: 2020-02-20 10:01:29 KST

A South Korean firm that produces the wiring harness that functions as a car's central nervous system relies on its Chinese factories to make most of its products.

"Because of the novel coronavirus outbreak, our products are not being supplied normally from China. We can't meet the delivery deadline for our customers including Hyundai and Kia Motors because only about 50 percent of our factories in China are currently operating."

Hyundai Motor Company and its sister company Kia Motors have temporarily suspended some of their production lines again this week after reopening factories last week.
According to industry officials on Monday, the automakers are halting their operations this week at some of their plants because they have a shortage of wiring harnesses and other parts from China amid the coronavirus outbreak.

An expert says, the most affected sectors appear to be the automobile and petroleum goods industries.

"For the car industry, there are serious ramifications for the production lines in China. The petroleum goods industry is also expected to suffer as China is its biggest export market."

He added that if the disease lasts more than six months like the previous SARS or MERS epidemics, the automobile industry and the petroleum industry are likely to see a drop in sales of about 14 percent and 12 percent respectively this year.
Petroleum product exports could drop by about 18 percent, and auto exports by over 14 percent should the outbreak last more than six months.

Another expert says South Korea's exports to China in February decreased significantly due to the logistics problems caused by the outbreak.

"From February 1st to 13th, exports to China decreased about 20 percent because of logistics issues. I believe this is the direct effect of the coronavirus outbreak."

"Experts say the government should provide enough support to those sectors experiencing economic harm due to the coronavirus outbreak."

That support includes cooperating with the Chinese government, injecting financial aid and adjusting customs and export procedures to minimize the negative impact of the outbreak on the economy.
Eum Ji-young, Arirang News.
KOGL : Korea Open Government License
본 저작물 중 본문에 해당하는 뉴스 스크립트(텍스트)는 공공누리 제1유형-출처표시 조건에 따라 이용할 수 있습니다.