By Vice Chairperson Joy Cho
Last week, a meaningful seminar was held at the Barun Law Firm, Ltd. in Samsung-dong, Seoul.
It was entitled, 'Explore Korea-Russia Business Possibilities and Business Risk Management.'
In the opening remarks, Lawyer Han Myung-gwan, and congratulatory address-maker, Lawyer Jae-pil Park and Professor Lee Sang-joon of the Department of Russia/Eurasia Studies at Kookmin University made presentations on the direction and possibilities of Korea-Russia business cooperation in a state of sanctions against Russia after the Ukraine war.
In addition, there was a presentation on the topic of risk management according to the industry/business area of Korean companies entering Russia by Jun-Ha Ryu, an international lawyer.
In the announcement on the same day, an analysis of the current economic situation in Russia, difficulties faced by Korean companies and solutions, and the possibilities of business cooperation between Korea and Russia were presented.
Despite the downgraded status of international credit rating, a positive view was announced that there are little significant fluctuations.
Rather, Korean companies see it as an opportunity to increase the economic balance by exporting intermediate goods.
The ripple effects of sanctions against Russia are as follows:
1. The importance of economic security has been highlighted.
2. In the long run, the war in Ukraine is expected to reduce Europe's dependence on fossil fuels, especially Russian oil and gas.
3. It was pointed out that Ukraine and Russia are the top producers and exporters of wheat and maize, which could lead to a global food crisis.
Korean companies' difficulties and solutions:
1. Suspension of factory operations of Korean companies such as Hyundai, Samsung, and Daewoo Shipbuilding due to difficulties in securing parts due to export control
2. Suspension of supply chain operations in Russia
3. Eurasian countries are also on the rise to prepare direct and indirect countermeasures due to Western sanctions against Russia
How to respond to Korean companies:
1. Article 5 of the Paris Convention can be used to counter the confiscation and withdrawal of about 5,000 patents owned by Korean companies.
2. Direct litigation in a tribunal independent of Russia for discrimination and unfairness between the countries of the bilateral investment guarantee agreement
3. Compensation can be obtained through the United Nations Convention on Contracts for the International Sale of Goods.
4. Confectionery companies that are not currently subject to sanctions (Orion, Paldo, and Lotte) are actively conducting business in Russia.
3. In case of trade through a third country, it can be shipped to Russia through document replacement after unloading in a third country.
4. Sea and air logistics with Russia are practically possible, and trade is possible through an agency.
To deal with situations such as suspension of transportation business in Russia, suspension of online advertisements in state media, and refusal to recognize trademark rights of global companies due to the cut off cooperation with Russia, assistance from Barun Law Firm, Ltd. could be used.