"Russia May Freeze Local Assets of Our Companies... Korean Residents Anxious"

Regarding President Yoon Suk-yeol's statement that South Korea could provide lethal weapons to Ukraine on a 'conditional' basis, concerns have been raised that Russia might retaliate by freezing the local assets of South Korean companies.

On Seon-geun, Secretary General of the Korean Business Association in Russia, said on MBC's "Kim Jong-bae's Focus" on the 21st, "Currently, companies operating in hostile countries (West), especially corporations, are having their assets here sold off; at present, the Foreign Enterprise Management Bureau is handling this as a kind of asset sale. However, if the country becomes an enemy state, this could lead to asset freezing," he said.

[Image source=Yonhap News]

Previously, Russia designated South Korea as a hostile country, and if Russia officially labels it as an enemy state, the situation could worsen further.

He said, "In the past year since the Ukraine crisis, the largest imports from Russia to our country were probably in the coal sector, and I believe that the ban on energy exports, including coal, is one of the measures being taken."

Secretary General Oh stated, "After being designated as a hostile country, South Korea initially participated in sanctions against Russia by banning exports of items such as semiconductors and automobiles. As a result, companies operating production facilities here, such as Hyundai, Samsung, and LG, have faced significant difficulties," adding, "Even now, there are many operational challenges, and Russian authorities are ordering these companies to either operate or sell off their assets, which is causing considerable hardship."

Not only companies but also Korean residents in Russia are experiencing considerable anxiety. He said, "Beyond simple unease, the biggest concern is the inability to predict the future," adding, "Naturally, the issue of whether to provide weapons is a very sensitive matter for both the Korean community in Moscow and businesses."

Secretary General Oh said, "Basically, while humanitarian aid is supported, there is a lot of skepticism about whether military support aligns with the rationale and practical benefits of diplomacy. Therefore, the Russian Korean community is paying close attention to the results of the U.S. state visit more than ever."