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Almost all European, American and Asian (except the “Chinese”) car manufacturers completely left Russia or “frozen” their activities. Among the whole spectrum of “lurking”, according to the experts
Many have probably already paid attention to the fact that over the past year, most European car brands, if they have not yet left Russia “to make ends meet”, have shown a clear intention to move in this direction. With the “Japanese” about the same situation. But the Koreans…
In the Russian market, they don’t seem to work, but they aren’t going away either. Even if they pretend they’re not there. However, recently there was information about the resumption of Hyundai production sites in St. Petersburg in the interest of the Kazakh car market.
The idiosyncrasies in the behavior of the “Koreans”, who seem to be fully following the sanctions and political wake of the United States in particular and the West in general, actually have a completely transparent explanation. They simply cannot afford to “lose” Russia and its market for objective reasons. Few people know, but one of the “Asian Tigers”, that is, South Korea, has languished almost before our eyes in recent years.
Coronavirus lockdowns, a shortage of semiconductors in the world, protectionist measures in the economies of many countries – all this has cut off Korean exports in the most brutal way. And all this against the background of the fact that the Land of Morning Silence does not really have any natural resources.
It actually lives and thrives thanks to its industry, which buys raw materials from abroad, processes them into high-tech products and sells them abroad. A kind of factory country. And for several years this company has been struggling with serious sales problems. After peaking at 3.23% in 2017, Korea’s share of the global export market has steadily declined, falling to 2.83% by the end of 2022.
And then they predict a general slowdown in the growth of the entire world economy – from 3.5% in 2022 to 2.5% in 2023. The rural factory will feel it to the fullest. But it’s still half the trouble. Experts believe that 2023 will be the first year for South Korea in which demographic problems will clearly affect the economy.
Here is observed almost the lowest birth rate in the world – 0.78 children per woman (in 1983 – 2.1 children). The trend is not changing, despite the massive efforts of the local government to boost the birth rate. And now many Korean companies are forced to cut production due to a banal labor shortage. All these effects, of course, affect the Korean auto industry.
Therefore, the Russian market, Russian natural and human resources are a kind of lifeline for Koreans. Perhaps even – the key to surviving in the ever-increasing competition with the mighty Chinese economy. That is why they do not want to restrict their activities in our country in any way.
And more than that, as soon as international politics allow the resumption of activity in the Russian Federation, the Korean automotive industry will be the first to rush to restore and develop its activities in our country. It can be assumed that this applies not only to Hyundai / Kia, but also to other Korean car manufacturers. SsangYong, infamously “merged” from Russia many years ago, whose 62% stake was bought last year by Korean industrial conglomerate KG Group, may well be returning to us – with renewed vigor, so to speak. As, by the way, and Samsung cars. Under this brand, cars of the Renault-Nissan alliance are produced in Korea.
In general, as soon as geopolitics allow, the “Koreans” will immediately return to Russia. Most importantly, they find a place in the country’s car market, which will probably be densely populated with Chinese car brands by then.
Many have probably already paid attention to the fact that over the past year, most European car brands, if they have not yet left Russia “to make ends meet”, have shown a clear intention to move in this direction. With the “Japanese” about the same situation. But the Koreans…
In the Russian market, they don’t seem to work, but they aren’t going away either. Even if they pretend they’re not there. However, recently there was information about the resumption of Hyundai production sites in St. Petersburg in the interest of the Kazakh car market.
The idiosyncrasies in the behavior of the “Koreans”, who seem to be fully following the sanctions and political wake of the United States in particular and the West in general, actually have a completely transparent explanation. They simply cannot afford to “lose” Russia and its market for objective reasons. Few people know, but one of the “Asian Tigers”, that is, South Korea, has languished almost before our eyes in recent years.
Coronavirus lockdowns, a shortage of semiconductors in the world, protectionist measures in the economies of many countries – all this has cut off Korean exports in the most brutal way. And all this against the background of the fact that the Land of Morning Silence does not really have any natural resources.
It actually lives and thrives thanks to its industry, which buys raw materials from abroad, processes them into high-tech products and sells them abroad. A kind of factory country. And this company has been struggling with serious sales problems for years. After peaking at 3.23% in 2017, Korea’s share of the global export market has steadily declined, falling to 2.83% by the end of 2022.
And then they predict a general slowdown in the growth of the entire world economy – from 3.5% in 2022 to 2.5% in 2023. The rural factory will feel it to the fullest. But it’s still half the trouble. Experts believe that 2023 will be the first year for South Korea in which demographic problems will clearly affect the economy.
Here is observed almost the lowest birth rate in the world – 0.78 children per woman (in 1983 – 2.1 children). The trend is not changing, despite the massive efforts of the local government to boost the birth rate. And now many Korean companies are forced to cut production due to a banal labor shortage. All these effects, of course, affect the Korean auto industry.
Therefore, the Russian market, Russian natural and human resources are a kind of lifeline for Koreans. Perhaps even – the key to surviving in the ever-increasing competition with the mighty Chinese economy. That is why they do not want to restrict their activities in our country in any way.
And more than that, as soon as international politics allow the resumption of activity in the Russian Federation, the Korean automotive industry will be the first to rush to restore and develop its activities in our country. It can be assumed that this applies not only to Hyundai / Kia, but also to other Korean car manufacturers. SsangYong, infamously “merged” from Russia many years ago, whose 62% stake was bought last year by Korean industrial conglomerate KG Group, may well be returning to us – with renewed vigor, so to speak. As, by the way, and Samsung cars. Under this brand, cars of the Renault-Nissan alliance are produced in Korea.
In general, as soon as geopolitics allow, the “Koreans” will immediately return to Russia. Most importantly, they find a place in the country’s car market, which will probably be densely populated with Chinese car brands by then.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
