As Shanghai, China enters a phased full lockdown due to COVID-19, there is concern regarding damage to companies in the Incheon area that have entered the city.
According to Incheon City and the Incheon Chamber of Commerce and Industry on the 28th, the Shanghai city government in China announced on its SNS on the night of the 27th that it would conduct a total COVID-19 test for 25 million citizens by dividing the city into two regions. With the Huangpu River as the center, the city is divided into Poxi to the west and Pudong to the east. The reason for the total closure is believed to be because the number of new confirmed cases announced by the National Health Commission of China on the 27th is 2,678, which is more than half of the 5,550 in the Shanghai area. 17 companies with parent companies in Incheon, such as POSCO International, are entering Shanghai. The city of Shanghai accounts for 8% (361,000 TEU) of cargo from China that is imported and exported from Incheon Port. Accordingly, the city plans to determine the extent of damage to related organizations and local businesses such as the Incheon Chamber of Commerce and Industry and the Incheon International Trade Association.
In particular, the city is struggling to come up with countermeasures such as providing interest on working capital of companies through the Small and Medium Business Stability Fund when the damage to Incheon companies reaches the initial scale of COVID-19 due to the complete lockdown in Shanghai.
In addition, the city believes that the impact of this incident on the overall economy of the Incheon area is small, but it is not yet possible to estimate how long the lockdown measures will be in China.
A city official said, “We are currently assessing the expected size of the damage, but the impact of this incident on the Incheon region’s economy is expected to be small.” are being discussed,” he said.
Reporter Jeon Ye-jun
