Seoul, South Korea – Foreign businesses and individuals are canceling their business trips and events in Korea due to the impact of the state of emergency.
According to industry sources on the 6th, Jacob Wallenberg, chairman of Investor AB, cut his stay in Korea short by two days and returned to Sweden on the 5th. As the fifth generation of the Wallenberg family in Sweden, Investor AB is the investment holding company of the Wallenberg family.
Wallenberg was originally scheduled to stay in Korea until the 7th. He arrived in Korea on the 4th and attended the "Korea-Sweden Strategic Industry Summit" held at the Grand Hyatt Hotel in Seoul on the 5th. Swedish Prime Minister Ulf Kristersson was also scheduled to attend the event, but his visit was abruptly canceled.
Some members of the Swedish economic delegation, who were scheduled to visit Korea with Prime Minister Kristersson, also canceled their visits. An industry official said, "Chairman Wallenberg received several calls from Sweden on the day of his departure," adding, "It seems that he shortened his visit to Korea due to the recent situation in Korea."
A buyer from company A, a semiconductor equipment manufacturer, postponed his visit to Korea, and a customer from the Middle East of company B, a water treatment equipment company, canceled his visit to Korea. Company C, an auto parts company, received a request from an overseas customer to postpone contract negotiations.
Foreign companies, including big tech companies, have canceled scheduled events and are delaying business trips by executives visiting Korea from overseas. Microsoft canceled an AI-related webinar on the 4th. It also sent an urgent email to all employees asking them to refrain from traveling to Korea. Google has also implemented a company-wide work-from-home policy.
HP is closely monitoring the situation in Korea. As the company has a Korean office in Yeouido, Seoul, it has recommended that employees work from home. An HP official said, "The headquarters is looking into the situation in Korea," adding, "We will likely decide whether to proceed with future events after monitoring the situation."
Foreign corporate agencies are also monitoring the rapidly changing situation in Korea in real time. An official from a global agency said, "We are constantly reporting the Korean political situation to our foreign corporate clients," adding, "Many clients say they will revise their planned visit roadmap if the situation changes rapidly."
Another official said, "Most of the press releases have been stopped at the moment," adding, "In the current domestic atmosphere, issues are focused on the political arena, making it difficult to promote companies."
Cancellations of group tours by foreigners to Korea are also continuing. According to a Middle Eastern inbound travel agency, a group trip by a Saudi Arabian prince was urgently canceled following the declaration of a state of emergency. A Philippine financial company has canceled its plan for a 150-person incentive tour to Korea scheduled for early next year.
Sky Tour, an inbound travel specialist, explained that the new booking acceptance rate dropped by more than 20% after the 4th, and the cancellation rate jumped from the previous average of 30-40 cases per day to 80 cases.
Overseas business trips by Korean companies or economic organizations are also being canceled.
The Korea International Trade Association has postponed the Korea-US Economic Cooperation Seminar, which was scheduled to be held at the Woodrow Wilson Center in Washington, D.C. on the 9th, to next year. A KITA official said, "In a sensitive situation where external variables such as exchange rates and interest rates are fluctuating, the company plans to focus on monitoring the Korean economy and supporting businesses." It is also known that some companies are considering reducing or canceling business trips to CES, which will be held in Las Vegas next month.
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