Setopia, along with its affiliates KCM Industry and NS World, announced on the 20th that they signed an investment agreement worth 163 billion KRW with Chungbuk Province and Jeungpyeong County at the '2023 Advanced Excellent Companies Investment Attraction Briefing' held at the Ambassador Seoul Pullman Hotel.
The 'Advanced Excellent Companies Investment Attraction Briefing' is an annual regular event attended by about 200 CEOs of mid-sized and small businesses from the MainBiz Association, introducing Chungbuk's excellent investment environment and attracting corporate investments. Since 2016, 20 member companies of the MainBiz Association have invested 600 billion KRW in Chungbuk Province, creating over 1,500 jobs, achieving significant results.
After the briefing, Chungbuk Province signed investment agreements totaling 373 billion KRW with companies from various industries, including finished pharmaceutical manufacturers and Setopia, KCM Industry, and NS World, which are building the first rare earth value chain in Korea. The province promised bold regulatory reforms and active administrative support such as financial incentives.
Through this investment agreement, KCM Industry and NS World plan to invest a total of 163 billion KRW in Chungbuk Province and Jeungpyeong County, with 51.3 billion KRW and 111.7 billion KRW respectively. KCM Industry and NS World plan to raise funds for facility equipment through organizations such as the Small and Medium Business Corporation, Industrial Bank of Korea, and Korea Development Bank.
KCM Industry, an affiliate in which Setopia holds a 61.65% stake, is a specialized manufacturer of rare earth neodymium powder. NS World is a producer of neodymium permanent magnets (NdFeB Magnet), and on the 19th, Setopia signed a stock transfer agreement to acquire a 29.49% stake in NS World.
Setopia is conducting business by completing the rare earth value chain together with KCM Industry and NS World. At the front end of the value chain, Setopia supplies rare earth neodymium oxide (PrNd Oxide) secured through the joint venture GCM established with Vietnam's VTRE to KCM Industry by refining it into metal (PrNd Metal). KCM Industry processes the rare earth neodymium metal into powder form, which NS World then manufactures into neodymium permanent magnets (NdFeB Magnet) and supplies them to first-tier vendors of automobile and home appliance manufacturers.
Setopia plans to establish a rare earth cluster in Chungbuk Province as a domestic hub for the rare earth value chain. Through this agreement ceremony, they have created a favorable environment to build a foundation for conducting rare earth business with full support from Chungbuk Province.
A Setopia official said, "We are pleased to sign an investment agreement with Chungbuk Province, which is recording one of the top economic growth rates nationwide," and added, "Starting with this investment agreement, we will work to consolidate the currently dispersed rare earth industry production facilities, human resources, and material resources into adjacent areas with support from Chungbuk Province and Jeungpyeong County, striving to create a rare earth industry cluster for agglomeration."
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