Hyundai and LG Explore Re-entering Russian Market Amid Ongoing War in Ukraine

South Korean firms Samsung, LG Electronics, and Hyundai are exploring a return to the Russian market, The Korea Times reported on March 28.

According to the news outlet, citing industry sources, LG Electronics has partially resumed operations at its plant in the Moscow region. The Russian outlet Rusbase earlier noted similar developments, referencing unnamed insiders.

“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.”

LG Electronics CEO Cho Joo-wan said on March 25 that the company remains cautious due to the ongoing war, but noted they are “closely monitoring the situation” and may consider resuming operations once sanctions are lifted.

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The publication also claims that Hyundai is exploring the possibility of returning to Russia. HD Hyundai Electric is set to participate in Electro 2025, Russia’s largest electrical exhibition, through a local distributor.

At the same time, several Hyundai Motor Group affiliates, including Kia, Hyundai Mobis, and Hyundai Steel, have recently posted job vacancies in Russia. These postings suggest the potential reactivation or scaling up of operations by the broader Hyundai group within the Russian market.

An official spokesperson for Hyundai Motor Group stated that “no decision has been made, and the company is closely monitoring the progress of the situation.”

As for Samsung, it is reportedly assessing the feasibility of resuming its business activities in Russia though the news agency did not provide any details.

Major South Korean companies halted operations in Russia following the country’s invasion of Ukraine in February 2022, aligning with broader international sanctions and corporate withdrawals.

Previously, Renault’s CEO stated not ruling out a return to Russia, despite the ongoing war against Ukraine. The company sold its Russian operations and nearly 68% stake in Avtovaz, maker of Lada cars, in May 2022, resulting in a €2.2 billion write-down.