Korean businesses on high alert as brief martial law spurs market turmoil

Home > Business > Industry

Korean businesses on high alert as brief martial law spurs market turmoil

Published: 04 Dec. 2024, 10:30 Updated: 04 Dec. 2024, 17:33

JIN EUN-SOO
[email protected]

Audio report: written by reporters, read by AI

LG's Seoul headquarters in Yeouido, western Seoul [YONHAP]

Emergency meetings were convened, major government-industry talks were indefinitely postponed and media events were canceled after President Yoon Suk Yeol briefly imposed martial law on Tuesday night.

In the aftermath of the declaration — the first imposition of martial law in Korea in 45 years — the business community moved swiftly to mitigate potential risks. Companies canceled events and monitored market conditions closely.

SK Group held an emergency meeting Wednesday morning, gathering top executives from its affiliates under the directive of Chey Chang-won, head of the group’s highest decision-making body. The discussion focused on responding to increased volatility in stock and foreign exchange markets.

LG Electronics advised employees at its Seoul headquarters in Yeouido, western Seoul, to work from home, citing expected traffic disruptions near the National Assembly, located only a short distance away.

HD Hyundai also convened an emergency meeting on Wednesday morning to prepare for potential economic turbulence. Chairman Kwon Oh-gap emphasized the need for vigilance in managing currency fluctuations and other financial risks.

“The heads of each affiliate should approach this with the urgency of an emergency management situation,” Kwon told executives. “At manufacturing sites, such as shipyards, extra care is needed to prevent safety incidents.”

Samsung Electronics stated it was closely monitoring developments but had not convened additional emergency meetings specifically related to the martial law declaration.

IT firms Naver and Kakao were on high alert as both of their portals experienced technical glitches the night before due to sudden traffic surge. Kakao initiated an emergency responsive system Tuesday night while Naver also operated a hot line between leadership and employees to prevent additional outages, according to local reports.

Kakao said it held an emergency meeting on Wednesday morning with CEO Jung Shin-a in attendance.

In a meeting with Deputy Prime Minister Choi Sang-mok Wednesday, leaders of six business organizations in Korea requested the government’s close attention to ensure a stable business environment for Korean companies amid heightened uncertainties from the transition of administration in the United States.

The crisis also disrupted key events.

A scheduled discussion on Commercial Act amendments, a pressing issue for Korean companies, was canceled. A planned meeting between the Ministry of Trade, Industry and Energy and Korea's semiconductor industry, intended to address new U.S. export curbs on premium AI chips, was delayed indefinitely.

Media events planned weeks in advance were also scrapped at the last minute.

Jaguar Land Rover canceled a new model launch event slated for Thursday, citing security concerns. MBK Partners called off a press briefing where it intended to explain its plan for managing Korea Zinc with some 100 reporters as well due to political and market uncertainties.

The declaration caused the Korean won to plummet against the U.S. dollar, which surged overnight to 1,446.5 won from 1,400.5 won prior to the announcement.

BY JIN EUN-SOO [[email protected]]