South Korea is one of the highly developed economies in Asia-Pacific. Major industries that contributes as the backbone of the economy include automotive, electronics and electrical, chemical, travel and tourism, and others. South Korea is also one of the leading producers of steel, cadmium, and zinc across the globe. Moreover, the country homes several automobile giants that have marked their brands across the globe. Some of the well-known South Korea-based brands of the automobile industry include Kia Motors, Hyundai Motors, and others. Additionally, the country is one of the leading countries in shipbuilding. Five out of the top ten enterprises (including the top four) are South Korean companies, with Hyundai Heavy Industries Co., Ltd. owning the largest shipyard globally.

However, due to the coronavirus (COVID-19) epidemic amid global economic downturn, the South Korean economy is facing serious concerns regarding industrial production. As per the data published by the United Nations Conference on Trade and Development (UNCTAD) on 4th March, the outbreak of COVID-19 could lead to a decrease of $50 billion in exports across global value chains. Moreover, it is expected that the recent outbreak of COVID-19 could severely impact the South Korean economy and reflect the loss of around $3.8 billion in its GDP. Some other economies that are mostly affected by the COVID-19 outbreak include EU ($15.6 billion), the US ($5.8 billion), Japan ($5.2 billion), Taiwan Province of China ($2.6 billion) and Vietnam ($2.3 billion). 

The report analyzes the impact of COVID-19 on the South Korean economy and major verticals across the country. Verticals such as automobile, retail, electronics and electrical, travel and tourism, and other have been analyzed in the report. South Korea homes some of the consumer electronics giants such as Samsung Electronics and LG Electronics that cater to wide range of customers across the globe. Outbreak of COVID-19 has disrupted the operation and supply chain of these companies. For instance, Samsung closed its assembly line at its smartphone factories in the Gumi industrial complex in the east of South Korea. LG Innotek has suspended operation at its Gumi site in March 2020. However, the suspension of the production was only for a definite period of time. South Korea is also seen as an attractive destination by majority of the population across the globe. However, the spread of coronavirus is expected to decline the number of foreign tourists to country by nearly 2.0 million in the first quarter of 2020. This would account for loss of around $2.3 billion to travel and tourism industry of the economy. 

Key companies operating in the South Korea whose business operations are significantly affected due to COVID-19 include Samsung Electronics, Kia Motors, Hyundai Motors, LG Electronics, Hyundai Heavy Industries, LG Chem, and others. Amid the recent COVID-19 pandemic crisis, companies have been forced to shut down their production unit and halt their production for a definite period of time. For instance, in February 2020, Hyundai Motor’s Ulsan plant put a break on its production after its one of the employees tested positive for coronavirus. The Ulsan plant of the company is responsible for manufacturing the GV80, Palisade, Santa Fe and Tucson. Moreover, the plant has an annual production capacity of around 1.4 million vehicles, accounting for around 30% of the overall Hyundai’s global production.

Research Methodology

OMR global recently published a report addressing the impact of COVID-19 on the South Korean economy. The study is incorporated by extensive primary and secondary research conducted by the research team. Secondary research has been conducted to refine the available data. Different approaches have been worked on to derive the market value and market growth rate. In the report, the analysis of the country is provided by analyzing various regional players, laws and policies, consumer behavior and macro-economic factors. The report includes analysis of effect of COVID-19 on the South Korean economy and major verticals in the country. Besides, an expected recovery timeline of the industry will also be included with the best- and worst-case scenario which will aid clients to take their future steps in the decision-making process.

Sources Include

• Financial reports of companies involved in the market
• Whitepapers, research-papers, and news blogs
• Company websites and their product catalog
• Government Organizations Reports

The report provides an in-depth analysis on market size, intended quality of the service preferred by consumers. The report will serve as a source for 360-degree analysis of the market thoroughly integrating different models.

The Report Covers

• Comprehensive research methodology of the pre and post COVID-19 impact on the South Korean economy.
• This report also includes a detailed and extensive market overview with key analyst insights.
• An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
• Analysis of regional regulations and other government policies impacting the South Korean economy.
• Insights about market determinants which are stimulating South Korean economy.
• Detailed and extensive market segments with regional distribution of forecasted revenues.
• Extensive profiles and recent developments of market players.