Myanmar Coup Alarms Korean Businesses
02 February, 2021
Korean businesses that take benefit of cheap labor on Myanmar are hunkering down following the coup d'état there.
Sources say Korean companies are actually taking steps to ensure the safety of their workers and families but are also trying to make sure minimal disruption to their operations.
In line with the Korea Trade-Financial commitment Promotion Firm and Export-Import Bank of Korea, Korean companies create 107 branch offices in Myanmar during the last three years and invested US$668 million.
The majority are textile manufacturers, however, many major conglomerates as well operate there. Hyosung offers been generating steel and chemical products since 1995, while POSCO set up a jv in 1997 to manufacture galvanized steel products.
Samsung opened an area branch there in 2013 to take care of sales and after-sales provider, and LG followed suit found in 2014. POSCO International possesses been involved with a gas-field organization since 2013.
A staffer at POSCO International, which sent Korean 70 personnel to the Southeast Asian country, said, "The safety of our staff is very important and we've instructed them to home based. We don't anticipate our business functions to encounter any problems, but we're closely monitoring the problem."
GS Engineering and Construction, which is creating a bridge in the key city of Yangon, said normal construction businesses are impossible at the moment. "We place the top priority on the safety of our workers and told them not to venture outdoors," the business said.
Korea Land and Housing Company or LH, which started building an industrial complex in Yangon late last year, is also appearing briefed on the situation. A staffer at LH stated, "We are continually examining the safety of our personnel there."
"Our business job is insured by the Multilateral Expense Guarantee Firm, so we are able to continue our operations irrespective of political risks or regime transformation there," the staffer added.
The military is unlikely to go after foreign businesses, but deposed de-facto leader Aung San Suu Kyi has needed mass protests against the putsch that could turn violent.
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