South Korean carmaker Kia Motors has decided to suspended production at all its factories near capital city Seoul starting Wednesday night as eight employees tested positive for COVID-19, local media reported.

 

The shutting of plant would result in production loss though it has not mentioned for how many days this closure will be in place. South Korean car companies have rued that COVID-19 is already disturbing the supply chain and lowered the demand for vehicles. Moreover, the country’s economy is also struggling as their GDP contracted by 3.2pc in April-June quarter, mainly due to fall in exports to which carmakers contribute substantially. 

 

In Seoul, COVID-19 cases were on a downtrend which gave the government the confidence to relax social distancing norms in the  Seoul metropolitan area of Seoul. After easing of lockdown, resturants, cafes and bakeries were allowed to have customers dine-in in addition to gyms and after-school academics being allowed to reopen. This resulted in a spike in positive cases. 

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