[Exclusive] Korea Wheel: "Cannot Invest in Boryeong-si... I've Never Seen Such an Administrative Organization"

Chairman Choi Hun: "Is there any difference when one company leaves the city?"
Mayor Kim Dong-il: "We will resolve civil complaints and inconveniences to make sure people can stay in Boryeong."

Korea Wheel Smart Farm Vinyl Greenhouse Appearance

Korea Wheel Co., Ltd., which is engaged in a legal battle with Boryeong City, Chungnam Province, over the construction of a smart farm, has decided to relocate the company to Daejeon City, sparking controversy.

According to Asia Economy's coverage on the 25th, Korea Wheel signed an investment business agreement worth approximately 117 billion KRW with Daejeon City on the 24th, agreeing to relocate its headquarters, factory, and research institute located in Jugyo-myeon, Boryeong City, to the Pyeongchon Industrial Complex in Seo-gu, Daejeon by 2026.

This is expected to cause significant setbacks not only in population decline?since Boryeong City, which has fallen below the 100,000 population mark, is classified as a high-risk area for population extinction?but also in securing tax revenue.

In particular, although the ongoing administrative lawsuit with Boryeong City regarding the smart farm construction is the main reason for deciding to relocate the company, the company claims it can no longer operate due to Boryeong City's complacent administrative handling, leading to criticism that only Boryeong citizens will suffer significant damage.

Choi Hoon, chairman of Korea Wheel, said in a phone interview with Asia Economy, "They ruined the company and made me a criminal. I have done all I could for Boryeong City," adding, "I repeatedly asked them to legalize the smart farm, but they kept dodging the issue."

He continued, "I need to invest more in the company, but Boryeong City is not even like local gangsters... I cannot invest in a city like this. I've never seen an organization with such administration," he criticized.

He especially emphasized, "The mayor came three times to encourage, congratulate, and ask for cooperation, so we spent hundreds of millions at the Agricultural Technology Center to build one (smart farm)."

Chairman Choi said, "It was illegal, but why did they come then? When I asked if I needed permission, they said since it’s not farming, no permission was needed. The mayor said that, but when someone filed a complaint by phone, they came out with a demolition order," adding, "They are like leeches sucking the taxpayers' money... I will expose this city to the world and leave."

He said, "I feel most sorry for the citizens of Boryeong. When I surveyed employees about relocating the company to Daejeon, 90% said they would follow. If employees and their families all move, about 1,200 people are expected to relocate to Daejeon."

He added, "The citizens of Boryeong don’t even know why the population is declining and real estate prices are falling; they are just suffering," and criticized, "They think one company leaving is not a big deal. The city hall acts like nothing changes when a company leaves."

He also claimed, "An acquaintance called the mayor asking if any measures should be taken since Korea Wheel is leaving, and was told that because a lot of investment was made there, the company cannot leave. What more can I say?"

Mayor Kim Dong-il stated, "Can a mayor just stand by and watch? Fundamentally, we will reconcile with the company so it can stay in Boryeong," and added, "Just because they signed a business agreement with Daejeon doesn’t mean they will move immediately. We will resolve complaints, establish countermeasures, and solve any inconveniences so the company can remain in Boryeong."

Korea Wheel Chairman Choi Hoon (left) is taking a commemorative photo with Lee Jang-woo, Mayor of Daejeon, after signing a business agreement for company relocation on the 24th. Photo by Daejeon City Hall

Meanwhile, Korea Wheel Co., Ltd. started an experimental cultivation project for crops such as strawberries, lettuce, young radish, and sprout wraps in June 2019 by installing four vinyl greenhouses and two containers, inspired by the conveyor trolley painting line of its automobile wheel manufacturing line. However, after Boryeong City issued an administrative demolition order for the smart farm and filed a criminal complaint against Korea Wheel in October 2021 due to a third party’s complaint, the company also filed an administrative lawsuit, leading to a legal battle.