Korean companies closely monitor Israel-Hamas conflict

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Korean companies closely monitor Israel-Hamas conflict

Published: 09 Oct. 2023, 08:39 Updated: 09 Oct. 2023, 17:50

JIN EUN-SOO
jin.eunsoo@joongang.co.kr

Fire and smoke rise above buildings in Gaza City during an Israeli air strike on October 8, 2023. Israel, reeling from the deadliest attack on its territory in half a century, formally declared war on Hamas Sunday as the conflict's death toll surged close to 1,000 after the Palestinian militant group launched a massive surprise assault from Gaza. [AFP/YONHAP]

Korean companies doing business in Israel are closing monitoring the Israel-Hamas conflict as deadly clashes broke out in the country.

No damage to business has been reported yet but if the situation gets worse — like the Russia-Ukraine war last year — staff are ready to be evacuated, sources said.

Samsung Electronics, which runs two research centers and a sales corporation in Israel, said 100 percent of its local employees have been switched to remote work for the sake of their safety. It has also opened an emergency contact line between Israel and the Korean headquarters to closely monitor the situation.

All three of Samsung's local branches are located near Tel Aviv and are at least 100 kilometers (62 miles) from the Gaza border where major clashes are taking place, according to the company.

Samsung Electronics has a couple of hundred local employees, 10 of whom are resident workers dispatched from Korea.

The news is especially alarming to Samsung as its executive chairman Lee Jae-yong had just visited the Samsung Israel R&D Center located in Tel Aviv 10 days ago on Sept. 28, to inspect investments in local startups and technology.

“If the situation gets worse and there's a government order to evacuate Korean employees, we are willing to do so but no order has been made yet,” said a Samsung Electronics spokesperson.

Hyundai Motor Group is also deeply involved in Israel’s auto business as Hyundai Motor and its sister company Kia are the best and second-bestselling car brands there.

Instead of having a local sales corporation, Hyundai Motor sells cars there through Israeli dealerships.

“No damage of cars has been reported yet at the dealerships,” a Hyundai Motor spokesperson said.

The Korean automaker also runs an office for CRADLE, Hyundai Motor’s venture capital arm, focused on robotics and autonomous driving, located in Tel Aviv.

“If the situation gets worse, the employees will be ordered to stay home, but no such directions have been made yet,” the spokesperson added.

LG Electronics, which runs a sales corporation in Tel Aviv, said it has also converted to telecommuting.

The Korean government convened a meeting Monday on the regional conflict to check up on the state of oil supply, as the country relies on the Middle East for nearly 70 percent of its oil.

The Strait of Hormuz, a major route transporting oil and gas to Korea, has remained intact despite the recent clashes, the Ministry of Industry said Monday.

“The geopolitical situation in the Middle East has a large influence on Korea's energy security,” said Kang Kyung-sung, vice minister for the Industry Ministry.

“The government and the industry will make an all-out effort to prevent the Israel-Hamas conflict from affecting Korea's supply route.”

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]