President Kwon Pyung-oh of Korea Trade-Investment Promotion Agency (KOTRA) speaks at a teleconference with KOTRA’s trade office in China to cope with the aftermath of the novel COVID-19. (Photos: KOTRA)

KOTRA officials hold teleconferences to communicate with overseas trade offices to discuss duties as the COVID-19 epidemic has spread China and other parts of the world.

Korea Trade-Investment Promotion Agency (KOTRA) came up with across-the-board responses to cope with the consequences of the novel COVID-19, utilizing its 129 trade offices, and upgraded the head of each emergency countermeasure team to the chief of each organization.

Though the Chinese New Year holiday is over, the spread of the virus, named COVID-19, has shown no signs of slowing.

KOTRA has told 22 trade offices in China to monitor grievances and complaints Korean companies experience and provide support to something they can on their own and convey related matters to the government’s countermeasure committee to establish response steps.

The number of Korean entities in China stands at roughly 27,000. Out of the total, about 3,700 firms are in operation. These companies specialize in supply chain management of Korean-made exports and the procuring of raw materials.

They have complained about difficulties in securing raw materials, caused by the disruption of plants in China, a lack of protective clothes and goods, manpower shortage of ports and disrupted logistics, caused by traffic restrictions, and lack of policy information from Chinese authorities.

Chinese authorities have allowed the opening of worksites with prior approval in time for the end of the Chinese New Year holiday on Feb. 10, and they are to issue certifications of irresistibility against delayed deliveries.

KOTRA has come to the aid of Korean companies suffering from lack of raw materials for emergency outsourcing.

KOTRA has informed Korean companies about provincial and municipal requirements to resume the operation of worksites and the issuance of certifications. KOTRA has distributed Q&A documents on grievances regarding labor affairs, and held consultations on guidance.

If KOTRA’s marketing projects cannot be implemented in the first quarter of the year due to factors such Chinese cooperative organizations and customers, the timing of their execution will be readjusted, and they will be carried out later in an expanded fashion.

A master plan on on-line consultations for emergency demand will be established and it will be translated into action.

Korean companies will be encouraged to explore alternative markets such as “New Southern Policy” and “New Northern Policy” countries except China to address a riding demand to brace for a rising demand for raw materials, parts and equipment as well protective goods, and a recently developed big data system will be in place.

The system is a platform designed to perform functions such as the recommending of promising markets by making the most of export stats and information on customer accumulated on its own and the publishing of AI reports.

KOTRA plans to establish countermeasures according to scenarios based on the timing of the slowing of the epidemic - between February and March, between April and May and the second half.

In a mid- and long-term perspective, KOTRA plans to provide support to Korean companies’ advancing to alternative markets for the diversifying of supply chain management while expanding its support to areas such as household economics, medical innovation, lifestyle changes and smart city marketing.

KOTRA President Kwon Pyung-oh said the latest virus has affected Korean exports and the global economy more severely than Severe Acute Respiratory Syndrome and Middle East Respiratory Syndrome epidemics, which took place in 2013 and 2015, respectively, and this crisis will serve as an opportunity to diversify exports and supply chain channels.