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South Korean LG and Hyundai quietly prepare Russian market re-entry amid rising US tariffs

South Korean firms like LG and Hyundai explore Russia market re-entry amid potential sanctions lift.

byOlena Mukhina

28/03/2025

2 minute read

The Kremlin in Moscow. Photo: Depositphotos

South Korean LG and Hyundai quietly prepare Russian market re-entry amid rising US tariffs

Major South Korean companies are conducting feasibility studies on resuming business operations in Russia, amid ongoing ceasefire negotiations between Russia and Ukraine and the potential lifting of sanctions, The Korea Times reports.

This move is driven by Russia’s significance as a key market for South Korea’s business diversification, particularly amid the increase in US tariffs. In 2021, before Russia’s all-out war on Ukraine, it ranked as South Korea’s 12th-largest export market, with bilateral trade reaching $29.9 billion.

According to industry sources, LG Electronics has recently resumed partial operations at its home appliance plant in Moscow. LG Electronics CEO Cho Joo Wan has stated that the company remains “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.”

Hyundai Electric, which has maintained its Russian business amid the war, plans to participate through a local distributor in Russia’s largest electrical engineering exhibition, Electro 2025, scheduled for early April.

Hyundai Motor Group is also exploring post-war opportunities in the Russian market. Its subsidiaries, Kia, Hyundai Mobis, and Hyundai Steel, have recently posted job listings in Russia.

Samsung Electronics is reportedly considering re-entering the Russian market as well.

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