South Korean conglomerates, including Hyundai Motor Group, Samsung Electronics and LG Electronics, are considering a return to the Russian market amid discussions on the potential lifting of sanctions against Russia, according to the Korea Times.
LG Electronics, a home appliance manufacturer, has reportedly partially restarted operations at its Moscow-area plant, which was shut down in 2022. The company’s spokesperson stated that the move aims to “prevent the depreciation of production capacity” and that the available materials at the plant will be used for production, with the company manufacturing washing machines and refrigerators.
LG Electronics’ chairman, Cho Joo-wan, said the company remains “cautious” and is closely monitoring the situation, as it can resume operations as soon as the sanctions are lifted.
A Hyundai spokesperson also stated that the company is keeping a close eye on the situation.
Samsung, a leading electronics manufacturer, has reportedly leased some production lines to local companies after closing its plant in Kaluga and is supporting sales in Russia through parallel imports.
A spokesperson for an unnamed conglomerate told the Korea Times that the Russian market remains important for Korean companies and that it is likely to make efforts to restore business once the conflict is resolved. However, the main issue is the uncertainty over which sanctions will be lifted during the peace talks and how Korean companies can regain market share, which has been seized by Chinese companies.
Hyundai’s potential return to the Russian market was reported by South Korean media in mid-February, following the first official meeting between the Russian and US presidents, Vladimir Putin and Donald Trump, which intensified peace talks.
Putin said on March 14 that Russia has already held talks with a range of foreign companies on their potential return to the Russian market. According to him, the talks are being conducted in a “closed format” and on the initiative of “some of our partners”.
On March 18, Putin ordered the development of a procedure for the return of foreign companies to the Russian market. He noted that some of them had sold their companies at a low price and that they should not be able to buy them back at the same low price when they return.
Russian Prime Minister Mikhail Mishustin said that companies that continue to operate through their subsidiaries and those that “migrated under the pressure of governments” but have preserved “jobs, contacts and technology” can initially return to Russia. He stated that a “special commission” will make individual decisions on each company.