LG Electronics, headquartered near the National Assembly, issued immediate remote work advisories to staff, citing the uncertain situation. (Yonhap)
SEOUL, Dec. 4 (Korea Bizwire) – South Korean businesses faced an unexpected disruption overnight as President Yoon Suk-yeol declared martial law late on December 3, prompting widespread adjustments across industries before the emergency was rescinded hours later.
Rapid Shift to Remote Work
Companies with offices in key areas, particularly Yeouido, moved swiftly to protect employees. LG Electronics, headquartered near the National Assembly, issued immediate remote work advisories to staff, citing the uncertain situation.
IT firms like Naver, Kakao Games, and Nexon temporarily shifted to full remote work. Global companies, such as AliExpress Korea, also transitioned to remote operations for the day.
Meanwhile, companies such as Amorepacific, based near the presidential office in Yongsan, debated contingency plans before returning to normal operations once the situation stabilized.
Police buses stationed in front of the National Assembly building in Seoul’s Yeouido district are seen withdrawing early in the morning on December 4. (Yonhap)
Corporate Leaders Stay Vigilant
Major conglomerates, including Samsung, SK, and LG, convened emergency meetings to evaluate potential economic fallout. The abrupt declaration rattled financial markets, causing a sharp spike in the won/dollar exchange rate and fluctuations in the stock prices of Korean firms listed on the New York Stock Exchange.
SK Group’s leadership discussed risk management strategies, while LG assessed foreign client concerns. HD Hyundai held a 7:30 a.m. crisis meeting, with Chairman Kwon Oh-gap urging executives to monitor exchange rate risks and maintain operational safety.
Sectoral Impact
Industries such as aviation and construction are closely watching the situation. Korean Air and Asiana Airlines reported normal operations but expressed concerns about declining international confidence in Korea as a stable destination.
Construction firms warned of potential slowdowns in real estate sales and overseas project bids due to market uncertainty.
Economic organizations also moved to address concerns. The Korea International Trade Association and the Korea Chamber of Commerce and Industry convened emergency discussions to evaluate export risks and maintain collaboration with government agencies.
President Yoon Suk Yeol declared martial law in an emergency address on the night of December 3, and by early morning on December 4, martial law troops were arriving at the National Assembly by helicopter. (Yonhap)
Broader Implications
Despite the brief duration of martial law, the incident left businesses grappling with the implications of political instability on economic confidence and market dynamics. A senior corporate official remarked, “Korea’s reputation for stability is crucial for trade and investment. Political disruptions like this raise concerns about the long-term impact on business operations.”
While operations have largely returned to normal, industries remain cautious, preparing for possible volatility in the days ahead.
M. H. Lee (mhlee@koreabizwire.com)
