◀ Anchor ▶

I would like to ask reporter Park Jin-joon of the economic team who covered this issue.

Reporter Park, Hyundai Motor Company decided to sell the factory and withdraw from Russia. The biggest reason must be that it is difficult to maintain in this state, right?

◀ Reporter ▶

you’re right. As it is known that the factory has been stopped for over a year now, the deficit has also increased significantly.

The industry estimates that more than 600 billion won has already been spent on building the plant, and if operating costs are included, it can lose regarding 1 trillion won.

If the sale is made, it is expected to be passed on for almost a bargain.

In particular, following February of last year when the Russia-Ukraine war began, semiconductors and electronic equipment, which are key automobile parts, were banned from being brought into Russia, making it difficult to procure parts.

We talked to an industry insider in Russia.

Local media reported that the Russian government also pressured Hyundai Motors to operate normally or sell it several times.

In addition, the fact that the Korean government is participating in the international community’s sanctions on Russia is also a burden.

◀ Anchor ▶

It’s a situation where you can’t run the factory, but you mean there’s constant pressure from Russia?

◀ Reporter ▶

That’s right. In addition, the international community is sanctions once morest Russia, and it is quite a burden for the Korean government to participate in this.

In fact, Hyundai Motor’s Russian plant has recently started terminating contracts with employees hired in Russia.

◀ Anchor ▶

The situation is the same now, but isn’t there a possibility of entering the market once more?

◀ Reporter ▶

In reality, it seems difficult.

It is understood that Chinese companies have already taken over the market that was already occupied by Hyundai Motor Company.

In the case of Hyundai Motor Company, it produced and sold regarding 350,000 units per year in Russia before the war.

It is estimated that only regarding 150,000 units that remained in stock were sold as the factory was shut down.

On the other hand, sales of Chinese companies, which were less than 100,000 units before the war, increased to 170,000 units in the past year.

That’s how much Hyundai Motor lost market share.

It is not difficult to operate a factory if there are parts, but the industry’s analysis is that it is not easy to regain the lost market.

In addition, if the Hyundai Motor Company factory is sold and then transferred to a Chinese company, there are concerns regarding internal technology leakage related to production.

◀ Anchor ▶

Yes, reporter Park Jin-joon.