But supply lines are crucial in an ever more interconnected worldwide economy and the coronavirus outbreak in China has seen Beijing order factories closed in several areas as it seeks to contain the epidemic. The impact on Hyundai will be eye-watering, with analysts estimating a five-day South Korean shutdown to cost the firm at least six hundred billion won (US$500 million). “The biggest problem is that we don’t know how the outbreak in China will unfold,” said Cheong In-kyo, an economics professor at Korea’s Inha University. “South Korean companies rely heavily on China for parts and components. Supply lines have since become much more diversified, analysts say.

Source: New Strait Times February 07, 2020 05:48 UTC