Myanmar Coup Alarms Korean Businesses

February 02, 2021 12:33

Korean businesses that take advantage of cheap labor in Myanmar are hunkering down after the coup d’état there.

Sources say Korean companies are taking steps to ensure the safety of their workers and families but are also trying to ensure minimal disruption to their operations.

According to the Korea Trade-Investment Promotion Agency and Export-Import Bank of Korea, Korean companies set up 107 branch offices in Myanmar over the last three years and invested US$668 million.

Most are textile manufacturers, but some major conglomerates also operate there. Hyosung has been producing steel and chemical products since 1995, while POSCO set up a joint venture in 1997 to manufacture galvanized steel products.

Samsung opened a local branch there in 2013 to handle sales and after-sales service, and LG followed suit in 2014. POSCO International has been involved in a gas-field business since 2013.

A staffer at POSCO International, which sent Korean 70 workers to the Southeast Asian country, said, “The safety of our staff is of utmost importance and we’ve instructed them to work from home. We don’t expect our business operations to encounter any problems, but we’re closely monitoring the situation.”

GS Engineering and Construction, which is building a bridge in the main city of Yangon, said normal construction operations are impossible at the moment. “We place the top priority on the safety of our workers and told them not to venture outdoors,” the company said.

Korea Land and Housing Corporation or LH, which started building an industrial complex in Yangon late last year, is also being briefed on the situation. A staffer at LH said, “We are continually checking the safety of our workers there.”

“Our business project is insured by the Multilateral Investment Guarantee Agency, so we can continue our operations regardless of political risks or regime change there,” the staffer added.

The military is unlikely to go after foreign businesses, but deposed de-facto leader Aung San Suu Kyi has called for mass protests against the putsch that could turn violent. 

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