Samsung, LG, Hyundai closely monitoring potential biz fallout from Israel
Leading South Korean companies are keeping close tabs on the potential business fallout from the escalating conflict between Israel and Palestinian Islamist group Hamas, industry sources said Monday, though no damage has yet been reported among firms operating in the Middle Eastern country.
According to industry officials, Samsung Electronics has initiated a remote work scheme for their employees in the country and are regularly checking the safety of their workers.
Samsung runs a research and development (R&D) center and a separate research institute in Israel. Late last month, Samsung Electronics Chairman Lee Jae-yong visited the R&D center in the country to be briefed on the company's investment in cutting-edge technology research.
LG Electronics, which operates a local sales branch in Tel Aviv, was known to have decided to bring its employees and their families in Israel back home due to safety concerns.
Besides its electronics sales operation in Israel, LG Electronics acquired a controlling stake in Israeli automotive cybersecurity firm Cybellum in 2021.
Hyundai Motor and its affiliate Kia, which lead the Israeli auto industry in terms of market share, are also "closely monitoring the local situation," according to the companies' representatives.
Industry watchers have expressed concerns that an extended conflict could negatively impact the automakers' sales in Israel.
Korean Air, South Korea's leading air carrier, has canceled its flights from Incheon to Tel Aviv this week due to safety concerns. It, however, has kept in place the returning flights that transport passengers from Tel Aviv to Incheon.
The company said it plans to decide whether to operate the return flights after reviewing the airport situation in Tel Aviv.
Local oil refiners, too, are keeping a close eye on the Middle Eastern situation.
Industry watchers say that the refining industry could potentially see a short-term increase in earnings if the conflict ends up jacking up international oil prices. But a prolonging of the situation could slow down demand and weigh down on net earnings.
"It's still premature to assess the overall impact, but with the global economy in turmoil and demand remaining sluggish, a sharp increase in oil prices could further dampen demand," an oil industry source said.
South Korean builders with projects under way in nearby countries in the Middle East are also on heightened alert.
"The sense of crisis in the Middle East isn't favorable for us," a construction industry representative said, adding the industry as a whole is "observing the situation for now." (Yonhap)
(责任编辑:재무)
下一篇:S. Korea, US, Japan install trilateral communication hotline amid N. Korea, China challenges
- ·1 in 4 foreign workers earn more from unemployment benefits than from work
- ·Doosan Robotics shares debut at double IPO price
- ·ONF hopes to open new chapter upon return from military service
- ·Live music festival Block Party to return to Haebangchon
- ·BTS' Jungkook to extend solo parade with 1st album 'Golden'
- ·임명직 마다한 장제원 의미심장 글 "발톱 숨기고 때 기다린다"
- ·Seoraksan cools below freezing as autumn takes hold
- ·Supporters of Israel hold rally in Seoul, urge Hamas to stop atrocities
- ·MBK chairman's novel 'Offerings' to hit big screen in Hollywood
- ·Seoul shares open higher on US gains; Israel
- ·For esports fans, more activities await beyond LoL matches
- ·Hamas weapons, tactics resemble those of NK: JCS
- ·김건희 여사, 광주디자인비엔날레 찾아 “문화예술계 육성 의지”
- ·Kakao Bank to acquire 10% stake in Indonesian digital bank
- ·Art Token launches Hangeul
- ·[Today’s K
- ·Jungkook becomes first Korean soloist to log 2 songs in Top 5 of Billboard's Hot 100
- ·[Our Museums] Discover wisdom of hanok at Eunpyeong History Hanok Museum
- ·Human rights commission urges Korea to abolish death penalty
- ·[From the scene] Eye
- ·How college students are coping with the impact of inflation
- ·USS Carl Vinson deploys for Indo
- ·Uncertainties remain for Samsung, SK after US eases export controls
- ·[Photo News] AI, conventional painting come together
- ·33년 경찰 경력 내세워…“안심구청장 누구입니까”
- ·Enjoying Halloween in Itaewon sparks debate online
- ·Seoul shares open higher on US gains; Israel