Kang Ki-jung: "Will Discuss 'Gwangju-type Job' with Hyundai Mobis"

Kang Ki-jung, Mayor of Gwangju Metropolitan City

[Asia Economy Reporter Choi Dae-yeol] Kang Ki-jung, Mayor of Gwangju Metropolitan City, said on the 21st, "We will meet with Hyundai Mobis to discuss the second Gwangju-type job project."

After touring the event venues, including the International Green Car Exhibition held at the Kim Dae-jung Convention Center, Mayor Kang told reporters, "We are establishing an eco-friendly car parts cluster and believe it is necessary to activate it." He added, "Although we have not yet set a specific date to meet with the company, we will request their participation."

During the tenure of former Mayor Lee Yong-seop, there were exchanges of opinions between Gwangju City and the company regarding this project, but Hyundai Mobis had consistently maintained that they had "never reviewed it." Since Mayor Kang, who took office earlier this month, has been steadily emphasizing attracting local companies related to eco-friendly vehicles such as the expansion of Gwangju Global Motors (GGM), which was promoted as part of the first Gwangju-type job project, and batteries, there is keen interest among industry and local political circles about what opinions will be exchanged with Hyundai Mobis.

Former President Moon Jae-in attending the completion ceremony of Gwangju Global Motors in April last year

The Gwangju-type job model, which was promoted since the time of former Mayor Yoon Jang-hyun, was adopted as a national policy task during the Moon Jae-in administration and is also based on the Special Act on Balanced National Development. In 2018, Hyundai Motor Company expressed its intention to participate in the project in Gwangju City, and by the end of the following year, construction began immediately, resulting in a completed vehicle factory with an annual production capacity of 100,000 units. GGM, established through investment by the city and Hyundai Motor, produces the Casper, a compact sports utility vehicle (SUV) developed by Hyundai Motor.

The concept of "increasing new jobs by lowering employee salaries while local governments compensate through housing and education support" initially gained consensus among many. It was also expected to provide a solution to the chronic issues in the domestic automobile industry, such as high wages and low productivity.

However, during actual company operations, social wages and various welfare benefits promised by the government and local governments were reportedly not properly upheld, leading to significant dissatisfaction among employees. The excessive dependence on Hyundai Motor is also a challenge that needs to be addressed.

Hyundai Mobis operates a module production plant near the Bitgreen Industrial Complex, where Gwangju City plans to establish the eco-friendly car parts cluster. A Hyundai Mobis official stated regarding the win-win regional job project, "Our original position that we are not currently reviewing it has not changed."

Compact SUV Casper, being contract-manufactured by Gwangju Global Motors