Super typhoon’s approach puts Korean businesses on high alert

Tensions grew sharply among retail, transport and manufacturing sectors on Monday on fears of the possible disruptions that Typhoon Hinnamnor could cause to their businesses, which are already suffering from a weak local currency and persistent economic uncertainty.

The country’s three major mobile carriers -- SK Telecom, KT and LG Uplus -- set up emergency centers to monitor hurricane damage and tackle possible power outrage problems.

The three companies mobilized emergency power generators, power generation vehicles and other key equipment at major regional network centers as precautionary measures. They also prepared for possible power outages in base stations located in lowland and subway stations which are prone to being submerged.

Flights were canceled to or from Jeju Island, Busan and other southern areas, the most affected region by the powerful storm. Korean Air called off flights to Jeju and Busan from 1 p.m. Monday to 9 a.m. Tuesday. Asiana Airlines canceled flights to Jeju and Yeosu, South Jeolla Province, after 10 a.m. Jeju Air also called off all 59 of its flights to and bypassing Jeju.

Along with the airways, sea routes were closed, leaving heavy industry under a tight work schedule for emergencies and real-time monitoring of the typhoon.

Hyundai Heavy Industries, Daewoo Shipbuilding ＆ Marine Engineering and Samsung Heavy Industries evacuated ships to the western sea and reinforced wire ropes to safely dock ships and marine cranes into harbors.

Petrochemical companies in Ulsan such as SK Innovation and S-Oil banned the entry of oil tankers and vessels to ports starting Thursday to prevent them from being swallowed by the sea.

Companies with manufacturing sites in the southern provinces were also under high alert.

Hyundai Motor Group’s Ulsan factory moved around 5,000 vehicles located in the export harbor port and lowland to a safety zone. Renault Korea Motors, which has a factory in Busan, is looking into contingency plans.

Posco’s Pohang Steelworks said it would shut down some steelmaking processes on Tuesday at the peak of the hurricane there.

LG Chem, Hanwha Solutions and Lotte Chemical, which have factories in Ulsan and Yeosu, said they were closely monitoring emergency management systems and preventing objects from falling on workers.

The super typhoon is likely to affect retailers already in high season for the Chuseok holiday that kicks off Friday.

E-commerce platform SSG.com closed parcel deliveries to Jeju Island and Ulleungdo, North Gyeongsang Province, on Friday, earlier than other regions. Market Kurly has secured additional delivery trucks, but said it might stop deliveries in some regions. Coupang said it will notify customers of the whereabouts of parcels and whether shipments will be delayed.

Food delivery platforms including Baemin issued notifications through its mobile app that it might limit delivery services.

Brick-and-mortar stores are bracing for the typhoon harder than last month’s flooding. Lotte Department Store has alerted staff to carry out safety inspections on stores in southern regions.

Hyundai Department Store, which suffered from severe water leakage in August, has removed all outdoor banners and fixed parasols and benches firmly to the ground, while moving flowerpots inside.

Convenience store chains are notifying stores to check any water leakage to outdoor power sockets and to tape glass doors and fold awning screens.

In order to save workers from a hectic commute during the typhoon, companies including Samsung Electronics, LG Electronics, LG Display, Hyundai Mobis, Krafton, LG Chem, KT, Hyundai Motor Group, CJ Group and SK Ecoplant are recommending employees to work from home.

For companies that suffer damage from the storm, Korea Customs Service said it will extend the due date for duty payments for up to one year and allow payment in installments.

According to the country’s weather agency, Typhoon Hinnamnor was on its way to the south-southwest of Seogwipo at a speed of 33 kilometers per hour as of 3 p.m. on Monday. Jeju Island was expected to receive rainfall of around 40 millimeters per hour.

By Byun Hye-jin (hyejin2@heraldcorp.com)