Sam-il PwC "Korean Companies Must Collaborate with Europe and Japan in Ukraine Reconstruction Projects"

Active Reconstruction Efforts by Poland and Others
"Government Guarantee Programs Are Essential"

Amid accelerated discussions on ending the Russia-Ukraine conflict following the inauguration of U.S. President Donald Trump, a recommendation has emerged that domestic companies actively participate in reconstruction projects in sectors such as construction, energy, and infrastructure, and collaborate with European and Japanese firms.

On the 18th, Samil PwC announced the publication of a report titled “Rebuilding Ukraine: Ukraine Reconstruction Projects and Opportunities for Domestic Companies,” which contains these insights. Samil PwC explained, “The report was published to examine the opportunities and threats of post-war reconstruction projects and to provide strategic direction for domestic companies.”

The report advised that for successful entry into reconstruction projects, domestic companies need to cooperate with countries actively engaged in rebuilding efforts, such as the European Union (EU) and Poland. In particular, Poland has taken in a large number of Ukrainian refugees and, including refugee accommodation costs, provides the highest support amount relative to its gross domestic product (GDP). Poland has also actively hosted multiple Ukraine reconstruction expos. The report stated, “It is appropriate to enter through joint projects or consortiums with major companies in these countries,” and added, “Joint project bids with Japanese trading companies or construction firms, which have relatively more business opportunities and strong government support compared to domestic companies, should also be considered.”

The report mentioned, “Domestic companies should view this reconstruction project as an opportunity to expand their presence and strengthen their position in Europe, particularly in construction, infrastructure, and defense sectors.”

The government’s role was also highlighted. It should provide information and investment incentives for sectors where domestic companies are expected to participate and support guarantee programs to mitigate business risks. Guarantee programs are essential for reconstruction projects as they compensate for overseas investment losses caused by political risks and force majeure, thereby encouraging private capital investment.

Jung-Tak Han, partner of Samil PwC’s Ukraine dedicated team, emphasized, “As expectations grow for the Ukraine reconstruction project, dubbed the ‘Second Marshall Plan,’ competition among global companies to secure early positions will intensify. For this reconstruction project, which presents a mid- to long-term opportunity to pioneer new markets in Europe, the government must provide institutional support such as comprehensive project information, guarantee programs, and investment incentives.”

This content was produced with the assistance of AI translation services.