Seoul heeds advice of conglomerate leaders to ease blow of coronavirus

[Photo by Yonhap]

South Korea will temporarily flex the statutory 52-hour workweek and lower air freight tariffs to soften the blow of the coronavirus outbreak on Korean businesses.

In a meeting with top business leaders, Finance Minister Hong Nam-ki agreed with Samsung Electronics Chairman Jay Y. Lee that after-hour corporate gatherings should not be counted in the 52-hour workweek. He urged companies to have more outings to help boost the domestic economy.

In July 2018, Korea cut the maximum weekly working hours to 52 from 68, adding pressure to employers already burdened from the double-digit minimum wage hikes.

The meeting came after President Moon Jae-in on the previous day vowed the government will do all it can to help fight the challenges faced by Korean companies whose businesses are heavily reliant on China.

Hong also accepted a proposal made by Yoon Yeo-cheol, vice chairman of Hyundai Motor, to temporarily cut the hefty air freight tariffs.

[Photo by Yonhap]

Korea’s biggest automaker suspended its assembly lines earlier this month due to shortages of Chinese parts. Faced with acute supply shortages, some companies have been sourcing by air, which is quicker than sea freight but 15 times more expensive.

Hong said the air freight tariffs would be temporarily lowered for companies that face difficulties due to the virus. The reprieve would be applied retroactively from Feb. 5, he added.

SK Group Chairman Chey Tae-won asked for greater diplomatic efforts to prevent the disruption of Korean facilities in China. SK Hynix, the group’s chipmaking arm, runs plants in Wuxi and Chongqing, roughly 800 kilometers away from Wuhan, the epicenter of the virus.

Hong said the Korean embassy would work closely with Chinese officials so that plants can partially continue operations even in the event of confirmed cases. He said he would also grant swift approvals of requests for increased air freight to facilitate shipment between the two countries.

By Park Yong-beom, Moon Jae-yong and Kim Hyo-jin

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]