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Korean companies impacted by Russia-Ukraine tensions

Posted February. 23, 2022 07:42,   

Updated February. 23, 2022 07:42


Tensions are mounting as the fears of war escalate over Russia’s invasion of Ukraine, including for industry and businesses. All Korean business expatriates have been withdrawn from local businesses and offices, and the government is preparing to check on trade risks.

According to a business source on Tuesday, there were around 10 Korean businesses with local corporations or offices in Ukraine, including Samsung Electronics, LG Electronics, Hyundai Corporation, POSCO International, Korea Tire and GS E&C. These companies have directed expatriates to return to Korea or relocated them to Poland or other adjacent countries after the Ministry of Foreign Affairs issued a travel ban, which is a level four travel alert, on Ukraine. There were around 10 expatriates working for Samsung Electronics and LG Electronics in Ukraine.

Korean companies with business operations in Russia, including Samsung Electronics, LG Electronics, Hyundai Motor, Kia Motors, and Orion, are concerned about the resource supply and domestic demand risks the situation may bring. Semiconductor manufacturers and trade companies are also monitoring the risks of war between Russia, Korea’s 10th largest trading partner, and Ukraine, which Korea relies on for neon (material used for semiconductors) imports.

Do-Young Kwak now@donga.com · Choong-Hyun Song balgun@donga.com