Chungnam's 'First' Foreign Investment This Year... Japan's Daikin Industries Invests 42 Billion KRW in Dangjin

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province has succeeded in attracting foreign investment for the first time this year. On the 19th, the province announced that it signed an investment agreement worth 42 billion KRW with Japan's Daikin Industries.

Daikin Industries is an air conditioning and chemical business company headquartered in Osaka, Japan, producing high-purity gases for semiconductor manufacturing. Last year, its sales reached 25 trillion KRW, ranking first globally in the air conditioning business sector.

Recently, the company established a corporation in Korea through a joint venture with CNG Hightech, and according to the agreement, it plans to build a semiconductor gas production plant on a 10,306-pyeong site in the Dangjin Songsan 2 Foreign Investment Zone.

Once the production plant is established, Daikin Industries is expected to produce and sell high-purity semiconductor gases in Chungnam starting from October next year, which had previously been produced and supplied directly from Japan. Major clients include domestic semiconductor manufacturers such as Samsung Electronics and SK Hynix.

According to the agreement, the province and Dangjin City will cooperate on infrastructure facilities necessary for the construction of the production plant and provide support to resolve difficulties arising during the acquisition of business permits and the construction process.

Yang Seung-jo, Governor of Chungnam Province, said, "The alliance and cooperation with Daikin Industries, which holds a 28% market share in the domestic semiconductor gas market, is very important," adding, "The new plant to be established in the Dangjin Songsan 2 Foreign Investment Zone is expected to become a strong force in creating high added value in domestic manufacturing."

Meanwhile, the signing ceremony was attended by Governor Yang Seung-jo, Dangjin Mayor Kim Hong-jang, and Daikin Korea CEO Hirao Yasuhisa.