'From China to Chungnam' KG Dongbu Steel Returns to Korea with 155 Billion Won Investment

(From left) Kim Hong-jang, Mayor of Dangjin, Lee Se-cheol, CEO of KG Dongbu Steel, and Yang Seung-jo, Governor of Chungnam Province, are posing for a commemorative photo after signing the agreement. Provided by Chungnam Province

[Asia Economy (Hongseong) Reporter Jeong Il-woong] KG Dongbu Steel is reshoring from China to Chungnam. The company's investment scale is 155 billion KRW, which is reported to be the largest investment among companies recently returning to Korea.

According to Chungnam Province on the 3rd, the day before, Chungnam Governor Yang Seung-jo signed an investment agreement at KG Dongbu Steel's headquarters in Seoul with KG Dongbu Steel CEO Lee Se-cheol and Dangjin Mayor Kim Hong-jang.

The agreement centers on KG Dongbu Steel withdrawing its production facilities operated in Jiangsu Province, China, and constructing a new cold-rolled and plated product manufacturing plant on a 35,974㎡ site within the Dangjin Asan National Industrial Complex (Godae District).

To this end, the company plans to invest a total of 155 billion KRW over three years from next year through 2024. The province emphasizes that this is the largest investment agreement among domestic reshoring companies since the outbreak of COVID-19 earlier this year.

The province expects that if KG Dongbu Steel's investment proceeds as planned, it will generate effects such as a 7.2 billion KRW change in production value, a 1.662 billion KRW change in added value, and 50 new jobs in the Dangjin area.

Additionally, due to the one-time effects of factory construction within the province, it anticipates production inducement of 188.998 billion KRW, added value inducement of 68.619 billion KRW, and employment inducement of 875 people.

KG Dongbu Steel recorded sales of 1.6 trillion KRW last year and achieved an operating profit of 50 billion KRW after joining the KG Group in March.

Chungnam Governor Yang Seung-jo said, “KG Dongbu Steel recently developed innovative materials such as antibacterial plated steel sheets with semi-permanent sterilization effects and NF non-combustible steel sheets that are non-flammable, and has applied to the Ministry of Trade, Industry and Energy for designation as a specialized company in materials, parts, and equipment.” He added, “I hope the company can grow into a global enterprise in Chungnam based on its technological capabilities.”