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Gwangju-style Auto Factory JV to be established in August

According to Yonhap News,

(GWANGJU=Yonhap News) JV for Gwangju-style Auto Factory is expected to be established in August.

Lee Byeong-hoon, deputy mayor of Gwangju City, held a press conference at Gwangju City Hall on August 5, saying that the JV establishment will be completed in August.

Gwangju City has signed agreement as shareholders, stipulating the rights and obligations as shareholders with investors, and completed stock subscription.

Since the signing ceremony of investment agreement on June 28, participated by 34 investors, individual investors have worked on internal process including financing for JV.

A change in the agreement since signing agreement is that Gwangju City (Gwangju Green Car Promotion Agency) and Hyundai Motors - strategic investors- agreed to give preferential dividends to other financial investors.

The city explained that such move was agreed in the initial phase of investment, not only to attract investors more efficiently, but also to consider and give favorable treatment for investors who decided investment in the project for the future of Korea's manufacturing industry in the face of challenging economic and management circumstances.

The name and directors of the JV will be discussed at a general meeting of initiators scheduled in August and will be officially announced.

Gwangju City stressed that the initial plan of commencing construction within this year, completing construction and building a mass production system in 2021 will not change as the JV is launched in August.

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Source Text

** This article was translated from Korean.

Source: Yonhap News (August 5, 2019)


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