Gumi City Emerges as Attractive Investment Destination for Reshoring Companies... Attracts Foreign-Invested Enterprises

Kolon Glotech, First Returning Company in Foreign Investment Zone

Investing 20.5 Billion KRW and Creating 70 New Jobs by December 2025

On the 24th, the city of Gumi in North Gyeongsang Province held an investment memorandum of understanding signing ceremony in the city hall’s main conference room, attended by Mayor Kim Jangho, Kolon Glotech CEO Bang Minsu, and about 20 other related officials.

Gumi City Hall.

Through this agreement, Kolon Glotech has become the first domestic reshoring company to enter the Gumi Foreign Investment Zone (materials and components type). The company will invest 20.5 billion KRW by December 2025 to establish a new manufacturing plant for automotive seats, creating 70 new jobs and meeting global automotive production demand.

Established in March 1987, the company is a comprehensive manufacturer producing automotive and lifestyle materials as well as cutting-edge advanced materials. In September last year, it was recognized as a domestic reshoring company by the Ministry of Trade, Industry and Energy.

In particular, the company operates the largest domestic facilities for knitting and processing automotive seat fabrics, and continues to produce top-quality car seat materials through ongoing technological development and quality control.

Mayor Kim Jangho stated, "I am pleased that this investment will enable the Gumi National Industrial Complex to play a central role in the production of automotive-related materials, parts, and equipment. We will spare no administrative and financial support to help reshoring companies settle in Gumi."

Since 2002, Gumi City has been developing a 1,684,115 square meter (509,445 pyeong) foreign investment zone with support from the Ministry of Trade, Industry and Energy and North Gyeongsang Province to create jobs and advance the structure of the industrial complex. Currently, companies are operating on 26 of the total plots.

Additionally, the city operates a dedicated team to attract foreign-invested companies and reshoring companies in advanced materials, parts, and equipment, establishing a one-stop administrative and financial support system.

In December 2020, the Ministry of Trade, Industry and Energy revised the “Act on Support for the Return of Overseas Enterprises to Korea” to actively support the reshoring of overseas companies. This allowed reshoring companies to lease sites in foreign investment zones outside the capital area, making Kolon Glotech the first reshoring company to move into the Gumi Foreign Investment Zone.

The government is providing strong support for reshoring companies, including investment subsidies of up to 30 billion KRW per business site (based on national funds), as well as tax reductions on corporate tax, customs duties, and local taxes, restructuring consulting, smart factory support, and guarantees and insurance.