South Korean companies may come back to Russia after two years of sanctions

South Korean companies may return to the Russian market following talks between Russian President Vladimir Putin and US President Donald Trump, South Korean media outlets say. Such brands as Hyundai, Samsung, and LG reportedly consider re-entering Russia.

Hyundai Motor Group considers repurchasing of its manufacturing facility in St. Petersburg. Industry sources indicate that Hyundai views Russia as a market it does not want to lose.

According to Yonhap News, Hyundai renewed its trademark registrations in Russia in 2024, though the company stated that no final decision was made regarding its return.

Samsung and LG Electronics also monitor the potential lifting of anti-Russian sanctions. Since their exit, Chinese brands have taken over much of the market, making a comeback challenging. However, if sanctions are removed, South Korean firms may regain their foothold on the Russian market quickly.

South Korean shipbuilders also watch the situation closely anticipating that Russia may resume orders for LNG ice-class tankers if restrictions are lifted.

Lotte Hotel, which operates hotels in Moscow, St. Petersburg, Vladivostok, and Samara, has sustained operations through domestic demand. The company expects that lifting sanctions would increase foreign tourist arrivals, benefiting the hospitality sector.

Following the first phone call between Trump and Putin this week, the US President announced that Russia and the US would immediately begin negotiations on Ukraine, which he expected to be successful. Both presidents exchanged invitations, and Trump later stated that their first in-person meeting could take place soon in Saudi Arabia.

After Russia kicked off its special military operation in Ukraine in 2022, major South Korean companies like Samsung, Hyundai, and LG scaled back or suspended their operations in Russia due to international sanctions and pressure. Samsung halted shipments of its products and suspended new investments, while Hyundai and Kia significantly reduced production at their Russian plants. Hyundai eventually sold its factory in St. Petersburg in 2023. LG also withdrew from the market, and South Korean shipbuilders lost contracts due to sanctions. Despite these setbacks, some companies maintained a limited presence.