Ministry of Industry Holds 3rd Win-Win Regional Job Committee Meeting
Investing 605.1 Billion KRW Over 3 Years to Create 1,476 Jobs
[Sejong=Asia Economy Reporter Kwon Haeyoung] The government has selected Gunsan in Jeonbuk and Busan as win-win regional jobs. The plan is to establish electric vehicle (EV) complete car and EV parts production clusters in the two regions respectively, creating 1,476 quality jobs over the next three years.
The Ministry of Trade, Industry and Energy held the 3rd Win-win Regional Jobs Deliberation Committee on the 25th and resolved accordingly.
Win-win regional jobs are projects where labor, management, civil society, and government make concessions and compromises to create quality jobs to overcome regional difficulties such as investment contraction and job losses. Once officially designated, various benefits such as tax incentives and investment subsidies from the government and local governments are provided. Following Gwangju, Miryang, and Hoengseong, the Gunsan-Busan type jobs, the third of its kind, will see an investment of 605.1 billion KRW, the largest ever, and are expected to create 1,476 new jobs.
In Gunsan, where regional hollowing intensified after Korea GM closed its plant in 2018, an EV production cluster will be established. Five companies?Myungshin, Edison Motors, Daechang Motors, MPS Korea, and Costec?will invest 352.8 billion KRW within three years, utilizing GM’s idle factories and skilled workers who lost their jobs, creating 1,106 jobs. The scale of EV production is expected to reach 70,000 to 80,000 units within three years.
Both major labor unions actively participated throughout the Gunsan-type job project, from preparing agreements to mediating conflicts. To ensure stable labor-management relations, an employee stock ownership plan and a labor board observation system will be introduced. Based on value chain agreements among participating EV companies, joint research and development (R&D), marketing, and logistics cooperation projects will be promoted to establish win-win measures for mutual growth among companies.
The Busan-type job project involves creating a core EV parts production cluster with participation from partners including Corens EM. Corens EM, in partnership with Germany’s BMW, has secured core technology for EV drive units and will invest 252.3 billion KRW within three years, creating 370 new jobs. Corens EM and its partners will implement technological win-win cooperation by sharing technology between primary and subcontractors and achieving localization through joint R&D. Participating companies will collaborate with high schools and universities in Busan to nurture local technical talent and contribute to regional coexistence by establishing community contribution funds and prioritizing local residents in hiring.
The government plans to support the smooth promotion of win-win jobs by fostering the EV industry ecosystem and improving working conditions. To this end, a Smart Mobility Collaboration Center will be established in Gunsan, Jeonbuk, and support will be provided for the development of skate platforms. Through a joint welfare fund project, welfare disparities between workers of participating companies and subcontractors will be addressed. In Busan, a Parts Technology Hub Center will be established to support technological independence and parts certification tasks for participating companies.
Seong Yun-mo, Minister of Trade, Industry and Energy, stated, "The selection of these win-win regional jobs aligns with the era’s demands for carbon neutrality and balanced regional development. I am confident it will serve as a foundation for industrial transformation to eco-friendly electric vehicles and inclusive growth."
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