Hyundai, Samsung, LG and KIA plan to return to Russia, but under certain conditions - media
Kyiv • UNN
South Korean companies are considering the possibility of resuming business in Russia after the end of the war in Ukraine and the lifting of sanctions, as Russia remains an important market.
Russia is still a significant market for Korean products. South Korean companies plan to resume their business in Russia if the Russian war in Ukraine ends and a subsequent peace agreement is reached. UNN reports with reference to The Korea Times and Hankyoreh.
South Korea mentioned the potential of the Russian market
The largest Korean companies are preparing feasibility studies on the possible resumption of business in Russia. These steps are related to the fact that Russia in South Korea is considered an important market for diversifying business interests. This is becoming relevant now, against the background of increasing tariff pressure from the United States.
Korean companies take into account that negotiations on ending the war between Ukraine and Russia are not slowing down: the United States has concluded limited ceasefire agreements, accordingly, "stopping long-range strikes on energy infrastructure facilities", writes The Korea Times.
With a population of over 140 million, Russia is a significant market with a great advantage for Korean products.
According to a recent article, for example, LG Electronics is already taking a quick step. According to industry representatives, LG Electronics has recently partially resumed operations at its electronics factory in Moscow.
"This step is aimed at preventing the deterioration of production facilities that have been idle since the beginning of the war," said an LG representative.
HD Hyundai Electric, which has supported its Russian business during the war, will also participate through a local distributor in Electro 2025, Russia's largest electrical engineering exhibition.
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Other examples include Hyundai Motor and Kia. The companies were two leading Russian car brands in 2021. But the group sold its plant in St. Petersburg in December 2023 for 10,000 rubles ($120). According to The Korea Times, Hyundai Motor Group is also now studying the feasibility of the post-war Russian market.
In 2022, Samsung Electronics suspended operations at its Russian plant in Kaluga, which produced 1 million TVs, monitors and washing machines per year. The company maintained its outlets in the country through parallel imports, but did not produce products in Russia. According to the latest data cited by the media in Russia, Samsung's marketing expenses from January to February this year increased by 30%.
Relations with the USA
As US President Donald Trump announced on the 26th (local time) that he would impose a 25 percent tariff on all cars manufactured outside the US without exception, companies that manufacture cars domestically, including Hyundai Motor Group, would also be subject to tariffs.
Interestingly, Hyundai Motor Group Chairman Chung Eui-sun previously announced that the company would invest $21 billion (approximately 30.7 trillion won) in the US automotive and steel industries. Trump then warmly welcomed the investment, saying, "Hyundai Motor Company is a great company," he said.
When Hyundai announced its investment, Trump also said that "we won't have to pay duties" because the company is investing in the United States
However, the new decisions show that Hyundai Motor is making large investments in the US, but is not receiving incentives to do so due to tariff and duty issues.
Trump said he would keep auto tariffs until the end of his term, and his policies are unlikely to change
Reminder
Ministers from China, South Korea and Japan will meet in Seoul to discuss economic cooperation. They will also discuss a response to trade pressure from the United States.