South Korean companies are preparing the ground for returning to Russia: under what conditions is it possible?
28 March 2025 17:05
The largest South Korean corporations, including LG Electronics, Hyundai Motor Group, and Samsung Electronics, are considering returning to the Russian market after several years of absence. This was reported by "Komersant Ukrainian" with reference to The Korea Times.
Their plans to resume full-fledged operations depend on geopolitical changes, primarily on the end of the war in Ukraine and the lifting of international economic sanctions imposed on Russia.
LG Electronics was the first of the Korean giants to partially resume operations at its home appliance plant near Moscow. The plant has been inactive since the start of the full-scale war in 2022. Now production is running on a limited basis, mainly to prevent the wear and tear of expensive equipment and to use the accumulated stocks of raw materials and components. The company emphasizes that it does not plan to resume production on a full scale and continues to closely monitor the situation with sanctions, emphasizing the need to comply with international restrictions.
TheHyundai Motor Group, which includes the well-known Hyundai, Kia, Hyundai Mobis and Hyundai Steel brands, is also cautiously assessing the possibility of re-entering the Russian market. Earlier, in December 2023, the company sold its large car plant in St. Petersburg, but retained the right to buy back the asset within two years. This fact demonstrates the company’s strategic approach, which leaves room for maneuver and return to the market under favorable conditions. Moreover, the South Korean automaker has recently started actively posting vacancies for employees in the Russian market, which further fuels speculation that the company is ready to quickly resume production and sales of cars if the international situation allows it.
Samsung Electronics, one of the world’s largest electronics companies, shut down its large plant in Kaluga in 2022, but did not completely leave the Russian market. The company maintained its presence through parallel import schemes and license agreements with local Russian partners. In 2025, Samsung significantly increased its marketing spending in Russia – by 30% compared to the previous year, which sparked active discussions about the South Korean giant’s possible plans to expand its direct presence in the country again.
Economic experts note that the full return of major South Korean brands is possible only after significant changes in geopolitics. They include:
- end of the war in Ukraine;
- hypothetical normalization of relations between the West and Russia;
- weakening or complete lifting of international sanctions.
These are the key factors for the start of full-scale operations of these companies. At the moment, we are talking more about preparatory actions and a wait-and-see strategy that will allow them to return to the market as soon as possible.
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