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Many Koreans in Russia are Returning to Korea
Country
Russia
Date
2023.03.22

Korean communities in Russia are closing their business and returning to Korea, having a burden due to the war between Russia and Ukraine doubled with the burden from the pandemic. The suspended operation of Hyundai Motor Group in Russia is one of the huge factors in causing such movement among Korean communities.


Hyundai’s automobile plant in Russia has been continuing success by far by producing 230,000 automobiles every year in Russia. It purchased a General Motors plant which closed its business due to Russia’s Crimea invasion in 2014 and even ranked the first place in automobile sales in Russia during the pandemic. Starting from February 2022, however, Hyundai has stopped operating due to the war and pushed ahead with a large-scale layoff. Then, the following month, TASS, a Russian news agency, reported that there was a movement to sell the Hyundai plant in Russia to a Kazakhstani company.


Russia negotiating with Kazakhstan to sell Hyundai’s Russia plant according to TASS (Source: TASS)

Russia negotiating with Kazakhstan to sell Hyundai’s Russia plant according to TASS
(Source: TASS https://tass.ru/ekonomika/17153453)



Due to the aggravated situation regarding Hyundai, the situations for cooperative firms in Russia are also worsening although they are carrying out several measures including reducing a workforce and cutting down expenses. The same situation applies to the Korean businesses that provide components and labor to Hyundai. Small and medium sized businesses that are comparatively lack in financial capabilities are suffering the most. They are even excluded from receiving the financial support from Hyundai, which made it for them to have difficulties in paying back a loan. Being in fear of their endeavor and investment for the past years turning into nothing, they are waiting for the factory to resume operation.


The ultimate victim of these economic circumstances is the workers. Koreans, who were employed as local labor in Russia, have lost their work due to the lengthened suspension of the plant’s operation. The resident employees who had been sent from Korean to Russia can have their job back after returning to Korea, but local employees, most of whom are contract workers, will lose their job almost permanently if the operation suspension continues. They have exchanged their payment in ruble to Korean won, which causes them to suffer the exchange loss due to the dramatic decline in ruble after the war, worsening their current situation.


However, they have no other choice but to leave Russia, since they have not laid out alternative foundations for residence in other areas in Russia. Consequently, many secondhand items advertisements are appearing a lot in Korean community group chats these days. When the whole family is leaving Russia, they sell the books their children used. When a single household is returning to Korea, they sell their home appliances including electronic devices and cooking ingredients they brought from Korea.


Group chat ads for secondhand items shared by a Korean community in Russia

Group chat ads for secondhand items shared by a Korean community in Russia



Hyundai plant in Russia is relatively close to downtown compared to its other global branches in the world. This made the factory one of the most preferred places to work considering the living conditions such as location of the residential buildings for employees and the schools for their children. Moreover, since Saint Petersburg is a famous tourist attraction worldwide and has many cultural facilities as a city of arts and culture, many Korean communities have tried to wait for the situation to be improved. However, many of them decide to leave Russia as the war is lasting more than a year and the economic situation is deteriorating.


Some Korean markets in Saint Petersburg still running their business despite huge drop in sales

Some Korean markets in Saint Petersburg still running their business despite huge drop in sales



In spite of all these situations, there are Koreans who are still staying in Russia. They are mostly Korean students in Russia who couldn’t give up their study and Korean communities who settled in Russia when the Korea-Russia diplomatic relations were established about 30 years ago. They are running restaurants, travel agencies, Korean markets, and other businesses after coming to Russia as missionaries or students. They seem to decide to endure the current difficulties as long as they can with their experiences of settling in Russia when things were a lot more difficult. Since the establishment of Korea-Russia diplomatic relations, many Koreans have dreamt a new opportunity for success and actually have made success in Russia. It is certain that Korean communities in Russia are going through the toughest time ever since the establishment. Koreans, however, have proved to be the peoples of strong will and mind: they settled in a foreign country after overcoming hardship in the foreign land. It is true that sad news has been continued these days, but it will all pass eventually. The remaining Koreans will serve as a firm steppingstone for the Koreans in the future migrating to Russia for a new opportunity when the time that Korea-Russia relations recover comes.




Overseas Korean correspondent