Tesla's China-made Model 3 vehicles are seen during a delivery event at the carmaker's factory in Shanghai, China. Yonhap

By Lee Kyung-min

The recent COVID-19 lockdown in Shanghai has emerged as a possible risk to the distribution networks of Korean firms that operate manufacturing plants in the world's second-largest economy, according to industry watchers Tuesday.

Nongshim, a food company, and AmorePacific, a cosmetics firm, said they are closely monitoring developments in the city, although their operations have not been as heavily affected as those of Tesla. The U.S. electric vehicle maker's Shanghai factory has remained shut for eight days, Monday, following a two-stage lockdown that started near the Huangpu River. The prolonged shutdown of factories in Shanghai may pose a major threat to partner firms and their employees, leading to the closures of businesses and job losses.

"We are closely monitoring the situation," an AmorePacific spokesperson said.