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By Park Jae-hyuk
Samsung, SK, Hyundai Motor and LG have been called out for their failure to denounce Russia's invasion of Ukraine by a London-based corporate watchdog, in analysis released Wednesday.
The Moral Rating Agency (MRA), set up to urge global enterprises to cut their ties with Russia, said that it has measured corporate statements to release its “Courage Index.”
It put together a list of 88 companies that have been avoiding denouncing Russia, among the 122 largest companies that were active in trading or investment there at the time of its Feb. 24 invasion of Ukraine.
According to the agency, there were 34 denouncers among the 122 companies, although three of them have continued their operations in Russia. None of the Korean firms were classified as “courageous” denouncers.
“While most of the cowards among Western companies opted for 'mealy-mouthed' statements, East Asian companies ― Chinese, Korean and Japanese ― tended to opt either for silence, making excuses or even 'reverse boycotting,'” the MRA said in a press release.
Samsung and LG Electronics, both of which suspended shipments to Russia, were classified as “mealy-mouthed” corporations.
“Samsung was a case of one step back and one step forward. It made its move after the Ukrainian government called for it to take action,” the MRA wrote on its website. “Like Samsung, LG was a mealy-mouther for what it didn't say about the war.”
Hyundai Motor, which suspended its manufacturing in Russia, was among the companies that made excuses, citing “supply chain interruptions” as the reason for suspension.
SK Group was criticized for remaining silent about the invasion.
“SK failed to disclose its commercial position on Russia, despite making a financial contribution to help children in Ukraine,” the MRA said. “This large importer of crude should make an announcement that clarifies it will cut its importing as well as exports of lubricants that it is engaged in.”
The MRA did not talk about POSCO, which was mentioned by the Yale Chief Executive Leadership Institute as the only Korean firm among 242 companies that have continued operations in Russia. The institute said last week that POSCO was operating through a Russian subsidiary, while Samsung, Hyundai Motor, LG Electronics, Korean Air and HMM suspended their businesses there.
Despite growing pressure from international organizations, Korean companies have remained cautious about commenting on Russia's invasion of Ukraine and their business plans there.