Korean firms prepare to resume business in Russia amid truce talks, 28 March 2025

As the talks toward a truce between Russia and Ukraine are gaining momentum, major Korean companies are accelerating their feasibility studies on resuming business in Russia. The move comes as Russia is seen as a critical market for diversifying business interests, especially amid growing tariff pressures from the United States...

Among major Korean firms, LG Electronics is making a swift move. According to industry officials, LG Electronics partially resumed operations at its electronic appliance plant in Moscow...

"The move is aimed at preventing deterioration of production facilities that have been idle since the outbreak of the war," an LG official said, adding that "the operation uses inventory materials at the plant." Before the war, the plant manufactured washing machines and refrigerators.

LG Electronics CEO Cho Joo-wan said Tuesday that the company is still “cautious because the war has not reached its end,” but added that “we are closely monitoring the situation because we may resume operation when sanctions are lifted”...

HD Hyundai Electric, which has been maintaining its Russian business through the war, will participate through a local distributor in Electro 2025, Russia’s largest electrical exhibition, scheduled for April 1 to 4, in an apparent move to exploit the high demand for restoring power infrastructure damaged by the war.

Hyundai Motor Group is also busy studying the feasibility of the post-war Russian market. Hyundai Motor and Kia were Russia’s top two car brands in 2021, but the group sold its plant in Saint Petersburg in December 2023 for 10,000 rubles ($120) under a clause allowing it to buy back the plant within two years. This means that the group must decide whether to resume its Russian plant by the end of this year.

Regarding the issue, a Hyundai Motor Group official said, "No decision has been made, and the company is closely monitoring the progress of the situation."

Apart from Hyundai Motor, its affiliates Kia, Hyundai Mobis, and Hyundai Steel have recently posted job openings in Russia, signaling greater chances of the group resuming business in Russia.

Samsung Electronics is also reviewing the feasibility of resuming its Russian business.

Samsung Electronics suspended operations at its Russian factory in Kaluga in 2022, which produced 1 million TVs, monitors and washing machines a year. The company has been maintaining its outlets in the country through parallel import, but has not been producing products in Russia and reportedly leased some of its manufacturing lines to local companies after the invasion began...

While Korean firms are ramping up efforts to reenter the Russian market, they face significant challenges as Chinese competitors have expanded their market share during the war...