President Moon: "We Can Strengthen New Industry Competitiveness Without Going Abroad" (Comprehensive)

Attended the Groundbreaking Ceremony of the 'Gumi-type Job' Factory... "A Revolutionary Spark for the Leap of Gumi Industrial Complex and Battery Industry"

[Asia Economy Reporter Ryu Jeong-min] President Moon Jae-in attended the groundbreaking ceremony of the 'Gumi-type Job (LG BCM) Factory' held at the Gumi Convention Center in Gyeongbuk on the 11th and evaluated, "Labor, management, civil society, and government each made small concessions and joined forces, demonstrating that it is possible to enhance the competitiveness of new industries through domestic investment without necessarily going overseas."

President Moon said, "Now, an investment of 475.4 billion KRW will be made over three years in the Gumi National Industrial Complex High-Tech Valley, and the largest battery cathode material factory in Korea will be established."

President Moon expressed, "Mass production will begin in 2024, and production capacity will be expanded to 60,000 tons annually by 2026, which is about 40% of Korea's current cathode material production capacity," adding, "This will mark a groundbreaking turning point for the Gumi Industrial Complex and Korea's battery industry to take a new leap forward."

[Image source=Yonhap News]

President Moon stated, "The vigorous revival of the Gumi Industrial Complex will certainly become more evident through job creation," and pledged, "The government will also provide full support together with local governments."

He said, "The industrial complex land will be leased free of charge for 50 years, and 57.5 billion KRW in local investment promotion subsidies will be provided," adding, "This investment will create more than 8,200 jobs. Local youth will be able to pursue their dreams in the places where they grew up."

President Moon explained, "Regional educational institutions, including Meister High School and Kumoh National Institute of Technology, will operate industry-academia cooperation programs to contribute. LG Chem and local governments will jointly establish an ESG fund worth 10 billion KRW and a cooperation fund of 6 billion KRW. This will serve as a catalyst to improve working environments for small and medium-sized enterprises and accelerate the transition to eco-friendly practices."

[Image source=Yonhap News]

President Moon said, "Korea will take another step forward in the battery industry, which is one of the core elements of global supply chain competition, along with the Gumi-type job model," and urged, "To secure a definite advantage in the battery supply chain competition, we must increase self-reliance in key materials and components."

He forecasted, "Cathode material is the most important material, accounting for 40% of battery manufacturing costs, but currently, half of domestic demand depends on imports. The 60,000 tons of cathode material produced at the Gumi-type job factory will be enough to make 500,000 electric vehicles, significantly reducing dependence on overseas cathode materials."

President Moon said, "The Gyeongbuk region will emerge as the center of the battery industry ecosystem, and Korea will lead the global battery supply chain, hoping that the Gumi-type job will once again write a successful case of productive regional jobs. The government will also strongly support this."