Invest KOREA

KOTRA signed MOU with five auto part manufacturers for investment support
To actively cooperate to boost local economy and create jobs

KOTRA signed MOUs with five auto part manufacturers at a groundbreaking ceremony for Hyundai Mobis's environment-friendly auto parts plant at Ewha Industrial Complex in Ulsan on August 28.

The ceremony was participated by about 200 participants including President Moon Jae-in, Prime Minister Hong Nam-ki, and Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy.

The MOU signing ceremony was attended by two small enterprises and three middle-standing enterprise. They are expected to create about 230 new jobs by investing a total of KRW 64 billion in returning home.

A small enterprise “A” which used to produce springs for vehicles in Tianjin, China, plans to expand its business in Incheon with prospects of sales increase in line with the growth of Korea’s eco-friendly cars. Another small enterprise “B” prepares to expand its business in Dangjin, South Chungcheong Province while scalding down its factory in Chingdao, China, in response to a rise in orders for large transportation equipment in Korea.

A middle-standing enterprise “C” plans to hand over a part of its component factory overseas and build a new factory in Korea to produce battery cases for electric vehicles. Based on its light-case technology, vital for improving efficiency of eco-friendly cars, it plans to actively respond to Korea’s increasing demand for eco-friendly cars.

As the investments from auto parts companies in Korea will certainly have riffle effects in employment of upstream and downstream industries, it is expected to greatly contribute revitalizing local economy. KOTRA has been making efforts to attract reshoring companies by dispatching a delegation 10 times over the past three years, and opened industry-wide discussion.

With the MOU signing, KOTRA will continue to support so that auto part companies returning home can implement investment and employment as planned. KOTRA is determined to be a partner in every step of reshoring process by engaging in consultation for reorganization of overseas business, selection of reshoring companies, application for incentives, and resolution of difficulties occurring in investment.

KOTRA President Kwon Pyung-oh said, “We set up a reshoring support team in February to step up the promotion of reshoring support systems and services such as consultation by visiting parents company,” adding that “we will keep making efforts to attract reshoring companies to contribute to revitalization of regional economy.”

Source: Invest KOREA (August 29, 2019)