Samsung and LG are renting out their Russian factory, and the reason is - South Korean report

Samsung Electronics and LG Electronics are planning to rent out a home appliance factory built in Russia to a local company. Samsung Electronics has partnered with Russian home electronics company VVP Group to develop a company near Moscow.
Discussions are underway regarding a plan to rent out the TV production line at a factory in the Kaluga region. LG Electronics also plans to build a factory in the Ruza region that produces televisions, washing machines and refrigerators in the Russian electronics company D.
We are negotiating to lend it to NS. Prior to this, Samsung Electronics' Russian factory began operations in March 2022, and LG Electronics began operations in August of the same year due to difficulties in receiving parts due to the invasion of Ukraine.
It has ceased operation due to this. The reason why the two companies are moving forward with leasing out factories is the large size of the Russian market. According to Indian market research firm Mordor Intelligence, last year
The size of the home appliance market in Sia was approximately 11.12 billion dollars (USD, approximately 1,643.6 billion yen). It is expected to grow to $131.8 trillion (approximately 1.9481 trillion yen) by 2029.
. Additionally, the Russian factory is located in the western part of the country, allowing it to meet demand in Eastern Europe. Furthermore, even if we sell the Russian factory, it will be difficult to recover the investment amount, which is another reason for lending.
It's one of the. Samsung Electronics invested 54 million dollars (approximately 7,983,520,000 yen) and LG Electronics invested 800 billion won (approximately 88,483,200,000 yen) in the construction of its Russian factory.