Korean companies operating in India have stopped their local production lines in line with the Indian government’s efforts to prevent the spread of COVID-19.

“Abiding by the Indian government’s decision, we will halt the operation of Noida Plant which produces smartphones and Chennai Plant that produces home appliances until the end of this month,” Samsung Electronics said on March 23.

The Indian government issued an emergency administrative order to temporarily suspend the operations of all business sites in Chennai except essential places such as hospitals and public offices. The deadline is the end of this month. However, the order may be extended pending the proliferation of the COVIOD-19 virus.

Samsung Electronics has steadily expanded Noida Plant, saying it will increase the annual smartphone production at the plant to 120 million units in 2020. Industry watchers expect that the plant shutdown will disrupt production of Samsung’s budget smartphones targeting India, including the “Galaxy M.”

LG Electronics will also stop operating production plants in Noida and Pune until the end of March. These plants produce home appliances such as washing machines. The plant in Pune also produces some smartphones.

Consumer electronics companies such as Samsung and LG have also hit a snag in overseas sales. “We will temporarily stop sales in stores for the safety of our customers and employees,” announced Best Buy, which operates more than 1,000 consumer electronics stores throughout the United States, on its website on March 23. “Instead, we have introduced a door-to-door delivery service for customers in an untact manner.” Best Buy does not provide installation services for large TVs and refrigerators by professional technicians due to virus infection concerns, which will hinder its normal sales activities.

Europe’s largest consumer electronics store, MediaMarkt, has also shuttered more than 850 stores in major countries since the middle of March. “In North America and Europe, not many customers use installation services for large home appliance unlike Korea, but if offline stores are closed, there will deal a blow to promotions of large home appliances and new products,” said an official at a household appliance company

Hyundai Motor also stopped operating the first and second factories in Chennai on the day. Hyundai’s Chennai plant produces 680,000 units of the Crete, the Santa Fe, the Eon, and the i20 annually. Kia Motors is also considering discontinuing production at its plant in Andhra Pradesh, India. Andhra Pradesh is not included in the Indian government’s business suspension, but Kia Motors is responding by reviewing a shutdown of the plant as it may be designated later depending on the spread of the novel coronavirus in the future.

The shutdown order sounded the alarm for POSCO. “We are placing in place a remotely working system and cooperating closely with the government of India,” said POSCO which decided to stop a processing center in Delhi and a processing center in Pune by the end of this month. Hyundai Steel’s coil mill and steel pipe manufacturing plant in Tamil Nadu, India, will also put production on hold during the same period

Samsung Electronics, LG Electronics and other Korean companies are sche-duled to restart their plants in China as businesses resume work after mandatory closures due to the deadly outbreak of Covid-19.

Automakers such as Hyundai, Kia, SsangYong and Renault Samsung, which had stopped their assembly lines in Korea due to a shortage of China-sourced auto parts, will also restart their operations.

However, The Korea Times said Korean businesses had only “partially” restarted and were unsure if operations would fully resume as the virus continues to spread.

Samsung’s home appliance manufacturing plants in Suzhou, China resumed work last Monday, while its Tianjin factory is set to reopen next week.

“Our business could have been disrupted if the Suzhou plant remained suspended,” a Samsung official said.

Although the Tianjin plant will restart its operations later than the Suzhou plant, any potentially negative consequences will be minimised as the plant is producing products only for consumers in the domestic Chinese market.

The new coronavirus-triggered angst appears to be spilling over to the Korean corporate realm as the global supply chain is feared to face some disruptions amid the rapid spread of the novel coronavirus in China, industry watchers said Sunday.

With the new coronavirus killing more than 300 people in China so far, Beijing has recently decided to extend its Lunar New Year’s holiday in some areas of the country in what could be a move that can disturb the normal operation of South Korean firms with manufacturing bases there.

The extension of the holiday that originally started Jan. 25 was earlier announced only in Hubei Province in central China, where Wuhan, the epicenter of the new virus, is located but was later expanded to other areas as the number of patients skyrocketed at an alarming pace.
South Korea’s finance ministry earlier said its economy has not yet faced direct fallout from the spread of the virus, but the country’s exports are poised to face a setback should the spread of the virus not be contained soon, industry watchers said, as local firms with production facilities in China have been suspending or scaling back their operations in the world’s No. 2 economy.

South Korea’s top tech giant Samsung Electronics Co. decided to shut down the operations of its home appliances production line in Suzhou, eastern China, until next week in tune with the extended holiday.

LG Electronics Inc. and SK Innovation Co. also plan to put off the reopening of their Chinese production line until the end of next week.

LG Chem Ltd. said it has sharply lowered the operational level of its battery line in China as well.

Korean chipmakers and display makers, on the other hand, have been maintaining the routine operation over the holiday, although LG Display Co. said it is considering closing down its facilities depending on the development of the issue.

“We already secured enough inventory in preparation for the Chinese New Year’s holiday, but it is inevitable for us to face troubles if the situation is drawn out over a long period,” a SK Innovation official said.

No. 2 chipmaker SK hynix Inc. said South Korean firms will eventually face some disruptions in their operations and production if the issue is protracted.

Industry watchers said the rapid spread of the new coronavirus has already prodded South Korean carmakers to scale down their production as the supply of some auto parts has been disrupted by the spread of the new virus.

SsangYong Motor Co. earlier said it will suspend the production of its plant in South Korea through Feb. 12 amid a delay in the supply of wiring harnesses, a part used to supply power in an automobile.

South Korean carmakers depend heavily on China for the supply of the part.

“As many auto parts makers have relocated to China to cut costs, it will not be easy for them to return home,” said Lee Hang-koo, a researcher at the Korea Institute for Industrial Economics & Trade.

Numerous South Korean firms, including Samsung Electronics, have kicked off task force teams, but the companies are likely to continue to face uncertainties as the new coronavirus situation is changing every minute, industry watchers added.