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Korean firms with Ukraine, Russia ties await the end of war

Published: 23 Sep. 2025, 11:14

HD Hyundai Construction Equipment CEO Choi Cheol-gon, second from right, and Ukrainian government officials tour the HD Hyundai Construction Equipment manufacturing facility at its Ulsan campus on Sept. 18. [HD HYUNDAI XITE SOLUTION]

Korean companies with ties to Ukraine and Russia are increasingly caught between waiting and acting as the war shows no sign of ending. Some are investing in work force training in Ukraine to prepare for postwar reconstruction, while others with factories in Russia remain hesitant to sell assets at a loss but are unable to restart operations.

A Ukrainian reconstruction delegation visited the HD Hyundai Construction Equipment campus in Ulsan on Sept.18, according to HD Hyundai.

The group included Marina Denysiuk, deputy minister of Ukraine's Ministry for Development of Communities and Territories, and Serhii Sukhomlyn, head of the Agency for Restoration and Development of Infrastructure, along with around 10 other government officials.

The visit was part of a construction equipment capacity-building training program hosted by the Korea Construction Equipment Manufacturers Association and the Korea Construction Equipment Technology Institute from Monday to Sunday.

The World Bank estimated last year that Ukraine will need $486.2 billion over the next decade to rebuild, according to a report published in February by Samil PwC’s research institute.

The cost continues to rise as the war drags on. Priority areas include energy, transportation, housing, public facilities and other infrastructure that require large-scale projects.

HD Hyundai’s three construction-equipment units are pushing ahead with plans to establish a training center in Ukraine. The photo shows an excavator simulator at the HD Hyundai Global Education Center in Eumseong County, North Chungcheong. [HD HYUNDAI CONSTRUCTION EQUIPMENT]

Construction machinery firms like HD Hyundai Infracore and HD Hyundai Construction Equipment — which held the No. 1 and No. 2 market share positions in Ukraine before the war — initially expected to dive into reconstruction work once the conflict ended. But with no resolution in sight, the companies are pursuing other opportunities, such as work force training.

“Equipment sales will only surge once the war is over. Since that’s not possible yet, we decided to shift focus to securing skilled operators and technicians before we supply equipment,” an HD Hyundai Construction Equipment representative said.

The company is working with the Ukrainian delegation to establish a construction equipment training center in Ukraine and is considering donating training machinery and VR simulators to local vocational schools. The initiative is modeled on HD Hyundai’s Global Training Center in Eumseong County, North Chungcheong, which houses testing facilities and simulators for construction equipment licensing.

The strategy aims to develop local talent, expand equipment supply when the war ends, and boost sales and aftermarket business.

Companies with production facilities in Russia are facing tougher choices. Hyundai Motor established its Russian subsidiary, Hyundai Motor Manufacturing Russia, in 2007, but sold its St. Petersburg plant to local venture capital firm Art-Finance in 2023 for 10,000 rubles ($110). Art-Finance is the parent company of the Russian auto group AGR. Hyundai included a two-year buyback option in the sale, which expires in December.

Hyundai Wia began operating its Russian plant in 2021 but has run it with minimal operations since the war between Russia and Ukraine began. [HYUNDAI WIA]

Other Hyundai Motor Group affiliates in Russia are also waiting for the war to end. Hyundai Mobis has considered selling its plant for two years, but has yet to find a buyer and is barely maintaining operations.

Automotive parts manufacturer Hyundai Wia, which opened an engine plant in Russia with an annual capacity of 240,000 units just five months before the war began, has been running at minimal capacity.

The company reported losses every year since 2021 but posted a profit in the first half of 2025 thanks to a favorable ruble exchange rate.

“We are waiting for the war to end, hoping Hyundai Motor will resume operations in Russia rather than sell assets at a loss,” an official at a Hyundai Motor Group production subsidiary said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE SU-JEONG [[email protected]]