Domestic Return Company 'Geumchang' from China Invests 20 Billion KRW in Yeongcheon ... Memorandum of Understanding with Yeongcheon City and Daegu-Gyeongbuk Free Economic Zone Authority

Global automotive moving and seat parts specialist company ‘Geumchang’ is investing in manufacturing facilities for electric vehicle battery pack cases and seat frame production in Yeongcheon.

Yeongcheon City (Mayor Choi Ki-moon) signed a Memorandum of Understanding (MOU) on the 17th at City Hall with representatives from Yeongcheon City, Daegu-Gyeongbuk Free Economic Zone Authority, and Geumchang to successfully promote Geumchang’s domestic return investment.

Yeongcheon City Hall.

Geumchang, investing through its domestic return this time, plans to invest 20 billion KRW from 2024 to 2026 in the Yeongcheon Advanced Parts and Materials Industrial Complex, a Daegu-Gyeongbuk Free Economic Zone, to establish manufacturing facilities for automobile battery module cases and seat frames (site area 14,270㎡) and to newly employ about 40 people.

Since its establishment in 1991, Geumchang has continuously grown as a specialized manufacturer of automotive chassis and body parts, solidifying its position as a leading domestic body manufacturer by being selected as a World Class 300 company in 2017, awarded the Gold Tower Industrial Medal in 2019, and chosen as Hyundai and Kia Motors Group’s Partner of the Year in 2014 and 2020.

This domestic return by Geumchang was prompted after entering Chongqing, China, to procure parts for finished vehicle manufacturers, but due to the downsizing of partner companies and worsening local economic conditions, it decided to return to Korea. In August this year, it was selected as a domestic return company supported by KOTRA and the Ministry of Trade, Industry and Energy, leading to its investment in the Yeongcheon Advanced Parts and Materials Industrial Complex.

On this occasion, Geumchang’s investment, as a representative local company, is expected to boost Yeongcheon’s automotive parts industry, which is undergoing a full-scale transition to the electric vehicle industry.

Mayor Choi Ki-moon said, “We anticipate a transformation to a future-oriented electric vehicle industrial structure in the Yeongcheon Advanced Parts and Materials Industrial Complex,” adding, “Yeongcheon City will spare no administrative support for the automotive industry, a key local industry, including new employment, job creation, and population growth.”