Gyeongbuk Province announced that Ecobike Co., Ltd., a designated company within the 'Smart Green Logistics Regulatory Free Zone,' has signed a Memorandum of Agreement (MOA) with Honestas, a US-based company, to establish a North American joint venture and supply 15,000 cargo electric bicycles (worth 100 million US dollars) to the US federal procurement market over the next five years.
Honestas, the company that signed the MOA, is certified as an SDVOSB (Service-Disabled Veteran-Owned Small Business), which allows it to receive priority and sole-source contracts in the US federal procurement market as designated by the US government.
Honestas had been seeking partners in Korea, Japan, and other countries to discover outstanding products, and became interested in Ecobike's cargo electric bicycle, which was registered as an innovative prototype on the Public Procurement Service's online platform. The two companies have been in detailed business discussions for about six months.
On the day of the agreement, Thomas M. Gibson, CEO of Honestas, visited the Gimcheon logistics free zone, signed the MOA with Ecobike Co-CEOs Choi Jeongnam and Lim Seongdae, toured the Yulgok Life Logistics Center, and then moved to the Gimcheon Gimbap Festival, which was held over the weekend.
The Honestas delegation personally tested the cargo electric bicycle, which was being piloted at the festival for event support, and confirmed its practical use on site. They expressed high expectations that the product could be commercialized in various sectors within the US procurement market.
Through this MOA, Honestas will soon establish a joint venture in the United States, and Ecobike plans to customize and supply its cargo electric bicycles, developed through the logistics free zone R&D project, to meet market demand and officially enter the US federal procurement market.
Meanwhile, Ecobike, a logistics free zone company, was recognized for the innovation of its cargo electric bicycle prototype developed through the free zone R&D project, receiving 'Innovative Prototype Certification' from the Public Procurement Service in July 2023. Since its official registration on the online procurement platform, the company has actively promoted commercialization by supplying samples to more than five public institutions, including facility management corporations.
Yang Geumhee, Vice Governor for Economic Affairs of Gyeongbuk Province, stated, "This contract is very encouraging as it demonstrates that the excellence of innovative prototypes, verified through pilot projects in the logistics free zone, is now recognized not only domestically but also internationally." She added, "We will spare no administrative support to ensure that the MOA between these companies leads to concrete results without any setbacks."
The logistics free zone was designated as a regulatory free zone in July 2021 and has successfully completed various pilot projects and safety verifications over the past four years. Since August of this year, it has been granted temporary special permits and has been focusing on business initiatives for commercialization.
Gyeongbuk Province is also actively working with the Ministry of the Interior and Safety, which oversees bicycle-related legislation, to revise the Bicycle Act for the industrialization of cargo electric bicycles. The province plans to continue its efforts to establish the Gyeongbuk logistics free zone as the center of the new cargo electric bicycle industry.
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