U.S. and Israeli airstrikes on Iran have pushed Middle East tensions to a peak, putting Korean industries on high alert. Major companies shared real-time updates online during the March 1 holiday weekend, scrambling to secure alternative logistics routes and evacuate local staff.
According to business sources on Sunday, major corporations spent the holiday monitoring Middle East risks online and preparing countermeasures. In-person meetings are expected immediately after returning to work on Monday. Samsung Electronics, SK Hynix, and LG Electronics are set to hold status review meetings to discuss responses to the Middle East situation.
The home appliances sector faces the most urgent pressure. Products like refrigerators and TVs rely heavily on maritime shipping due to their bulk. Companies are exploring alternative sea routes and overland detours to minimize disruption from vessels passing through Middle East waters.
Firms with operations in the Middle East have taken steps to ensure employee safety. LG Electronics, which maintains an extensive network across Dubai, Israel, and Iran, evacuated staff including its Israel branch manager to safe zones in coordination with the Korean Embassy. One employee stationed in Iran has also completed evacuation.
Samsung Electronics urgently relocated staff from Iran and Israel to neighboring countries including Dubai, Egypt, and Jordan. Employees in the United Arab Emirates, Qatar, and Iraq have preemptively shifted to remote work. Samsung plans to prioritize employee safety with additional evacuations to third countries or repatriation depending on how the situation develops.
Samsung operates consumer electronics businesses in the Middle East, selling smartphones, TVs, and home appliances. The company has a Middle East and North Africa (SEMENA) subsidiary in Riyadh, Saudi Arabia, and participates in smart city projects including Neom City. It also runs a semiconductor research center in Israel. However, Samsung has no direct production facilities in Iran.
The semiconductor industry found no immediate supply chain impact after reviewing risks, as there are virtually no major operations or materials and equipment suppliers in the region. Companies plan to continue monitoring for prolonged conflicts and oil price volatility.
The shipping industry remains on edge. HMM confirmed that one of approximately 20 container ships and tankers operating in the region was inside the Strait of Hormuz but has safely exited. Six to seven other vessels are standing by in nearby waters. "Operations have not been suspended. We are closely monitoring the situation while considering comprehensive measures including route changes and detours," HMM said. The Korea Shipowners' Association also sent an urgent notice to member companies requesting crew protection, verification of war insurance terms, and information sharing with the Cheonghae Unit and the Ministry of Oceans and Fisheries.
Hyundai Motor faces no immediate impact as it halted all Iran operations including sales in 2018. However, the company is closely watching developments given potential effects on its first Middle East production base (HMMME), which opened in Saudi Arabia last year.
Air routes have also been directly affected. Korean Air flight KE951, which departed Incheon Airport at 1:13 p.m. on February 28 bound for Dubai, made an emergency return from Myanmar airspace. Flight KE952 from Dubai to Incheon, scheduled for 9 p.m. the same day, was also canceled. "We have decided to cancel the Dubai-Incheon route through March 5," Korean Air said. "Flight operations from March 6 onward will be determined after comprehensively assessing local conditions."
Hanwha Group has established a real-time communication system with local offices to monitor the movement and safety of employees and their families.
