Chungnam Attracts Investment of 241 Billion KRW from 17 Companies... Boosting Local Economy

[Asia Economy (Naepo) Reporter Jeong Il-woong] Chungnam Province has attracted 17 companies. These companies plan to relocate or newly establish/expand production plants in 8 cities and counties within Chungnam.

On the 27th, the province announced that Chungnam Governor Yang Seung-jo, Dangjin Mayor Kim Hong-jang, and heads of 8 local governments, along with representatives of 17 companies including Shinra Precision CEO Choi Gye-yeol, met at the provincial office to sign investment agreements.

The agreement centers on each company investing 241 billion KRW in a 276,978㎡ industrial complex site within the province to relocate or newly establish/expand production plants. Among the companies, 10 will expand existing plants, 6 will relocate from other regions, and 1 will return from overseas to Korea.

First, four companies ? bearing manufacturer ‘Shinra Precision (25 billion KRW investment)’, rubber and plastic manufacturer ‘Kemco (20.5 billion KRW investment)’, semiconductor manufacturing equipment company ‘ISLT (10 billion KRW)’, and industrial nonwoven fabric manufacturer ‘BNK (3.7 billion KRW)’ ? plan to newly build production plants in Cheonan.

Additionally, polyimide manufacturer ‘Daelim Corporation (13.1 billion KRW investment)’ will relocate its plant to Nonsan Dongsan General Industrial Complex, and hand sanitizer tissue manufacturer ‘Zauber (6 billion KRW)’ will establish new production facilities in Gyeryong 2nd Industrial Complex.

Currently located in the metropolitan area, Bukuk Feed and Changsanjungong will relocate to Dangjin. ‘Bukuk Feed (33.1 billion KRW investment)’ will move to Songsan 2 General Industrial Complex, and ‘Changsanjungong (21 billion KRW)’ will relocate to Seokmun National Industrial Complex.

In Dangjin, besides these companies, airport and port boarding bridge company ‘TRA (4.2 billion KRW investment)’ will establish new production facilities in Seokmun National Industrial Complex.

Also, glass product processing company ‘Iretech (3.2 billion KRW)’, smart logistics equipment company ‘Hwadong Hightech (14 billion KRW)’, and packaging glass container manufacturer ‘Woojin Industrial Tech (8 billion KRW)’ plan to relocate or newly establish plants in Seocheon Janghang National Industrial Complex. With these companies’ attraction, the first phase occupancy rate of Janghang National Industrial Complex is expected to rise from 30% to 38%.

Furthermore, in Hongseong, elevator manufacturer ‘Sam-il Elevator (11.1 billion KRW investment)’ and glitter manufacturer for cosmetics and paints ‘KOCM (3 billion KRW)’ will each establish new sites. Sam-il Elevator is a company that had expanded to Dalian, China, but is now returning to Chungnam.

The province expects that once these companies settle and begin production, there will be production effects worth approximately 259.5 billion KRW and added value effects worth about 60.7 billion KRW within the province.

Additionally, effects generated during site development and equipment procurement by each company are expected to induce production of 331.2 billion KRW and added value of 123.4 billion KRW.

Chungnam Governor Yang Seung-jo said, “It is meaningful that large-scale investment attraction has been achieved at a time when the regional economy is stagnating due to the prolonged COVID-19 pandemic,” and added, “We hope this agreement will serve as a new impetus not only for the region but also for the 17 companies.”