“The plant was handed over for just 140,000 won, but...” Russian ambassador: “Hyundai Motor and Kia are seeking a return to Russia”

[Financial News] Lee Seok-bae, South Korea’s ambassador to Russia, said Hyundai Motor and Kia remain highly interested in the Russian market and are likely actively exploring ways to re-enter it.
According to a report by the Russian daily Izvestia on the 14th (local time), Lee said in an interview, “As far as I know, Hyundai Motor and Kia remain very interested in the Russian automotive market,” adding, “They are likely conducting market research into how they could return.”
Lee identified the end of the war in Ukraine as both the biggest obstacle and a prerequisite for a return to Russia. “Since resolving the conflict is the most important condition for a return, re-entry is unlikely to be easy before the war ends,” he said, adding, “Korean automakers are reviewing plans for how to respond in the future, based on their continued interest in the local industry.”
Until 2022, before the war in Ukraine broke out, Hyundai Motor and Kia ranked second and third in sales in Russia, behind local brand Lada, and became national favorites. But after the war began, they struggled with parts shortages and eventually decided to withdraw. In 2024, they sold their entire 100% stake in their Russian production subsidiary, which included the plant in St. Petersburg, to local company Art Finance for just 10,000 rubles (about 140,000 won).
The deal included a “buyback option” allowing the plant to be repurchased within two years. But Hyundai Motor did not exercise the right, and the option expired on January 31 this year. Adding to the difficulties, Russia enacted a law restricting foreign companies that have withdrawn from buying back their assets, making it even harder to regain their existing production facilities. Even so, Izvestia reported that Hyundai Motor and Kia have continued efforts to protect their brand rights, registering 10 and nine trademarks, respectively, with Russia’s patent office last month.
Experts predict that even if the conflict in Ukraine ends and U.S. sanctions against Russia are lifted, it will be difficult for Hyundai Motor and Kia to enter the market on the same terms as before. Chinese companies have completely taken over the void left by departing Western businesses. In fact, Chinese automotive brands’ share of the Russian market soared from just 19% in 2022 to 58% in 2024.
Izvestia said, “Even if sanctions are eased, Korean automakers will face many challenges stemming from fundamental structural changes in the Russian market.”


[email protected] Park Ji-hyun Reporter