Capital Region Mid-sized Company 'Deokil Industry' Invests 45 Billion Won to Establish Auto Parts Factory in Gyeongju

CEO Ugideok and Mayor Jun Nak-yeong Agreement

Gyeongbuk Province and Gyeongju City are attracting global suppliers of automotive electronic components to further solidify the automotive parts value chain in the southeastern region of Gyeongbuk and to expand the electronic components cluster throughout Gyeongju City, thereby promoting the industrial agglomeration of related industries.

On the afternoon of the 6th, Gyeongbuk Province and Gyeongju City signed a Memorandum of Understanding (MOU) for investment to establish a vehicle electronic components manufacturing plant. The signing ceremony was held at Deokil Industry and Gyeongju City Hall, attended by Lee Dal-hee, Vice Governor for Economy of Gyeongbuk Province, Joo Nak-young, Mayor of Gyeongju City, and Yu Ki-deok, CEO of Deokil Industry.

Gyeongju City Hall.

Under this investment agreement, Deokil Industry will invest 45 billion KRW by 2026 to build a factory on a 20,000㎡ site within the Geomdan General Industrial Complex in Gyeongju City. The factory will produce electrical and electronic control components for internal combustion engine vehicles and electric vehicles, including vehicle seat power module switches, and is expected to create more than 80 new jobs.

Established in 1993, Deokil Industry is a manufacturer of automotive electrical and electronic components. Its main domestic clients include HKMC (Hyundai Motor Group), DAS, Rear Korea, DSC, Hyundai M-Sheet, and Hyundai Transys. Overseas customers include GM, Toyota, Tesla, Stellantis, Tata Motors, and Rivian. The company operates its headquarters in Pyeongtaek, Gyeonggi Province, a research center in Hwaseong, and a production subsidiary in the Philippines, boasting 30 years of industry experience as a mid-sized enterprise.

Deokil Industry invests more than 10% of its annual sales in research and development (R&D) and has been actively preparing for the electric vehicle parts era since 2020. Leveraging its excellent technological capabilities, it has signed supply contracts with overseas automotive markets such as Tesla, Rivian, and Volkswagen, producing over 2 million electric switches monthly.

Last year, in recognition of these achievements, the company was awarded the Gold Tower Industrial Medal by the Ministry of Trade, Industry and Energy.

Taking this investment as an opportunity, the automotive parts industry, which has been concentrated in the Oedong area of Gyeongju, will be expanded to the Angang area in the northern part of Gyeongju. The plan is to extend the automotive parts industrial cluster throughout Gyeongju City. The local community is optimistic about expanding the entire city into a future-oriented automotive parts hub by attracting companies with outstanding technological competitiveness.

Yu Ki-deok, CEO of Deokil Industry, stated, “The new Gyeongju plant will operate advanced production lines with strict quality control and internationally compliant testing equipment independently. We plan to reinvest more than 20% annually in R&D to lead the automotive parts market as a world-class technology-centered company. We will prioritize hiring Gyeongju citizens at the new plant to grow together with the local community.”

Lee Dal-hee, Vice Governor for Economy of Gyeongbuk Province, said, “The industrial development cycle is too fast, and only companies that continuously challenge and adapt survive. We appreciate Deokil Industry’s proactive investment during difficult times. We will actively support Deokil Industry to grow into the world’s number one company in electronic automotive components.”