💼 As peace talks between russia and Ukraine gain momentum, large Korean companies are accelerating their feasibility studies on resuming business in russia. This is due to russia being seen as a critical market for diversifying business interests, especially amid growing tariff pressure from the USA.
Source: PRYMYI
📰 According to The Korea Times, if the two countries reach a full ceasefire or peace agreement, sanctions on russia could be lifted, allowing Korean companies to resume their operations in this market.
🌏 With a population of over 140 million, russia is a significant market that strategically connects Central Asia and Europe. In 2021, bilateral trade between Korea and russia reached $29.9 billion, with russia being Korea’s 12th largest export market.
📈 According to industry representatives, recently LG Electronics partially resumed operations at its Moscow factory. This is done to prevent deterioration in production capacity, which has been idle since the war began.
💬 LG Electronics CEO Cho Ju-Wan stated that the company remains cautious, as the war is not over, but is closely monitoring the situation for potential resumption of operations after sanctions are lifted.
⚡ Hyundai Electric plans to participate in Russia’s largest electrical exhibition, Electro 2025, which will take place from April 1 to 4, to take advantage of the demand for energy infrastructure restoration.
🚗 Hyundai Motor Group is also exploring opportunities in the post-war russian market. In December 2023, the company sold its factory in St. Petersburg but with a buyback option within two years, indicating the possibility of restarting production.
📱 Samsung Electronics is also considering options for resuming operations in the russian market after halting production at its Kaluga plant in 2022.
📊 At the same time, Korean companies are facing competition from Chinese firms, which have significantly increased their market share in russia during the war.
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