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Gwangju City and LG Innotek Sign 100Bn Deal for New Mobility Production Line
[Gwangju = Newsis] Reporter Song Chang-heon — The City of Gwangju and LG Innotek signed a KRW 100 billion investment agreement on the 13th at City Hall to establish a new production line for automotive control modules.
The signing ceremony was attended by high-level officials, including Gwangju Mayor Kang Gi-jung, Director General of Cultural Economy Kim Young-moon, Head of the AI Industry Bureau Son Du-young, LG Innotek CEO Moon Hyuk-soo, Senior Vice President and Head of the Mobility Solutions Business Unit Vice President Yoo Byeong-guk, and Vice President Cho Baek-soo Vice President, Head of Management Support.
Under the agreement, LG Innotek will invest a total of KRW 100 billion by 2028 to build an Automotive Application Processor (AP) Module production line at its Gwangju facility. Construction is slated for completion this December. Once finished, the total floor area of the Gwangju plant will reach 97,000 square meters.
The vehicle AP module is a new business venture LG Innotek launched last year. Often referred to as the "brain of the vehicle" (similar to a computer’s CPU), it is a core component that provides integrated control for advanced driver assistance systems (ADAS) and digital cockpits.
The city plans to provide proactive administrative support to ensure the investment proceeds smoothly, alongside financial incentives such as tax breaks and subsidies.
Gwangju expects this investment to transform the LG Innotek plant into a pivotal hub for mobility components, strengthening the local industrial ecosystem in line with the city’s strategy to become a "testbed" for future vehicles, electronics, and AI. Demand for these modules is rising rapidly alongside the growth of autonomous and electric vehicles (EVs).
"While the direct employment effect is 30 jobs, the ripple effect will be far greater," said Mayor Kang. "This agreement is a signal fire for Gwangju’s era of prosperity and will bolster our transition into a 'regulation-free' demonstration city."
CEO Moon added, "Since its completion in 1985, the Gwangju plant has served as the 'Mother Factory' for our mobility business. As this is a location of strategic importance, we will actively cooperate to help Gwangju lead the future of mobility."
◎ NEWSIS, goodchang@newsis.com
Source Text
Source: Newsis (January 13, 2026)
Date
2026.01.22
Views
2
According to Newsis,
[Gwangju = Newsis] Reporter Song Chang-heon — The City of Gwangju and LG Innotek signed a KRW 100 billion investment agreement on the 13th at City Hall to establish a new production line for automotive control modules.
The signing ceremony was attended by high-level officials, including Gwangju Mayor Kang Gi-jung, Director General of Cultural Economy Kim Young-moon, Head of the AI Industry Bureau Son Du-young, LG Innotek CEO Moon Hyuk-soo, Senior Vice President and Head of the Mobility Solutions Business Unit Vice President Yoo Byeong-guk, and Vice President Cho Baek-soo Vice President, Head of Management Support.
Under the agreement, LG Innotek will invest a total of KRW 100 billion by 2028 to build an Automotive Application Processor (AP) Module production line at its Gwangju facility. Construction is slated for completion this December. Once finished, the total floor area of the Gwangju plant will reach 97,000 square meters.
The vehicle AP module is a new business venture LG Innotek launched last year. Often referred to as the "brain of the vehicle" (similar to a computer’s CPU), it is a core component that provides integrated control for advanced driver assistance systems (ADAS) and digital cockpits.
The city plans to provide proactive administrative support to ensure the investment proceeds smoothly, alongside financial incentives such as tax breaks and subsidies.
Gwangju expects this investment to transform the LG Innotek plant into a pivotal hub for mobility components, strengthening the local industrial ecosystem in line with the city’s strategy to become a "testbed" for future vehicles, electronics, and AI. Demand for these modules is rising rapidly alongside the growth of autonomous and electric vehicles (EVs).
"While the direct employment effect is 30 jobs, the ripple effect will be far greater," said Mayor Kang. "This agreement is a signal fire for Gwangju’s era of prosperity and will bolster our transition into a 'regulation-free' demonstration city."
CEO Moon added, "Since its completion in 1985, the Gwangju plant has served as the 'Mother Factory' for our mobility business. As this is a location of strategic importance, we will actively cooperate to help Gwangju lead the future of mobility."
◎ NEWSIS, goodchang@newsis.com
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Source: Newsis (January 13, 2026)
** This article was translated from Korean.