SEOUL, KOREA - Since the tragic ferry sinking incident on April 16 that caused more than 100 confirmed deaths with about 200 still missing, the whole country has been in mourning and marketers are refraining from putting out showy commercials and promotional events. Companies are also cancelling corporate parties and golf outings in droves. Home shopping channels also reported their sales revenue plummeted more than 20 percent since the 16th while five-star hotels said most of the banquets were postponed on short notice.

 

Some in the corporate sector voiced concerns that although necessary out of courtesy to the victims and their families this may dampen the overall consumption too much. For example, Hyundai Motor Group said it would abstain from holding marketing events for the time being unless otherwise absolutely necessary. Kumho Tire has also postponed the launch event for its new product "Solus TA31" on the 28th. 

 

GM Korea had planned a test driving session with 180 guests at the speedway in Ansan, Gyeonggi Province, on the 26th to allow them to compare performance of the new Chevrolet Malibu Diesel with the BMW 520d and Volkswagen Passat. But the company later delayed the event to June given that the venue is in Ansan, the city in which Danwon High School that had the most victims from the ferry accident is located.

 

The luxury sports car maker Ferrari has rescheduled the date for the new California T launch originally slated on April 29. BMW also decided to skip the spectacular pomp and circumstance before the unveiling of the new electric vehicle "i3" on the 24th.

 

An official at a business interest group said, "Even though the current situation doesn't warrant serious concerns, it may become a serious problem if the atmosphere of mourning continues for weeks." The Federation of Korean Industries indeed sent out messages to member firms to encourage their workers to take out as many vacation days as possible during the May holiday season so that they could spend more and thereby stimulate the economy.