Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Will Hyundai Motor return to Russia?
Hyundai's car factory in St. Petersburg, Russia / TASS-Yonhap
By Lee Min-hyung
Carmaker denies rumor concerning immediate resumption of Russia business
Hyundai Motor’s latest move to register multiple trademarks in Russia is rekindling speculation that the carmaker may soon resume its business there.
According to reports from Russia’s news agency, RIA Novosti, the Korean carmaker has registered trademarks, such as its corporate logo, which will be valid through 2034. This enables the carmaker to produce and sell various automobiles and auto parts there, according to the report.
The company suspended its Russian operations in December 2023, selling its St. Petersburg factory for approximately $95 (140,000 won). The deal included a buyback option, allowing Hyundai to repurchase the plant within two years of the sale.
At that time, Hyundai Motor decided to withdraw its Russian business amid the escalating war between Russia and Ukraine. The carmaker struggled to secure a stable supply of key auto parts due to the conflict and decided to suspend operations at the plant in March 2022.
Hyundai Motor, however, denied the rumor that the carmaker’s return to Russia looks imminent.
“The registration of trademarks cannot be seen as a preparatory work for our inroads into a certain country, but is a typical process conducted to maintain the firm’s brand rights across the globe,” a Hyundai Motor official said.
However, with the deadline for exercising the buyback option drawing closer, it remains to be seen whether the carmaker will shift its position at the last minute.
In September, Hyundai Motor CEO Jose Munoz also reaffirmed the carmaker’s basic stance that it “does not have any immediate plans” to buy back the factory and resume its business in Russia. He said the carmaker left the market, and nothing has changed since then (regarding its strategy in the country).
Despite the company’s official denial, rumors persist about a possible resumption of its operations in Russia, as the country was once a major market for the automaker.
According to data from the Korea International Trade Association, Russia accounted for 25.5 percent of Korea’s automobile exports in 2021. Kia and Hyundai Motor ranked second and third, respectively, in the Russian market that year.
Hyundai Motor entered the Russian market in 2007 and completed construction of its St. Petersburg factory in 2010 to deepen its presence there, but the outbreak of the war halted the carmaker’s expansion plans.