Supplying 15,000 Cargo Electric Bicycles Over Five Years
Gyeongbuk Technopark (President Ha Inseong, Gyeongbuk TP) announced on October 29 that Ecov Co., Ltd., a leading company in the Smart Green Logistics Regulation-Free Special Zone (hereinafter referred to as the "Logistics Special Zone"), has signed a strategic Memorandum of Agreement (MOA) with Honestas, a U.S.-based company. The agreement aims to establish a North American joint venture (JV) and supply approximately 15,000 cargo electric bicycles, valued at around 100 million dollars, over the next five years.
Through this MOA, the two companies plan to establish a joint venture in the United States and supply cargo electric bicycles, developed based on the technology demonstrated and verified in the Gyeongbuk Logistics Special Zone, to the U.S. federal procurement market in earnest.
The signing ceremony took place at the Gimcheon Yulgok Living Logistics Complex Center located within the Logistics Special Zone. Attendees included Thomas M. Gibson, CEO of Honestas, Lim Seongdae and Choi Jeongnam, co-CEOs of Ecov Co., Ltd., as well as officials from Gyeongsangbuk-do Province and Gyeongbuk Technopark.
The Gyeongbuk Smart Green Logistics Regulation-Free Special Zone was the only zone nationwide to receive the highest grade (Excellent) in the 2023 performance evaluation conducted by the Ministry of SMEs and Startups, securing an additional 1.35 billion won in national funding incentives.
With the secured funds, the zone promoted commercialization product development R&D projects, and the resulting prototype's outstanding innovation was recognized, ultimately leading to the signing of the MOA for exports to the United States.
As the main operating institution of the Logistics Special Zone, Gyeongbuk TP facilitated cooperation with relevant ministries such as the National Institute of Technology and Standards and the Ministry of the Interior and Safety to ensure smooth demonstration processes.
Furthermore, with the participation of more than 100 local university students and residents, various scenario-based demonstrations were conducted on different road surfaces, and the identified issues were analyzed and communicated to Ecov.
In particular, systematic support was provided through external experts, including technical support, professional consulting, and performance evaluations, significantly enhancing the final product quality.
Gyeongbuk TP, in collaboration with an external professional institution (KTC), established the nation's only safety test evaluation lab for cargo electric bicycles, benchmarking the German standard (DIN79010).
This infrastructure development provided a breakthrough at a time when there were no domestic safety standards or dedicated evaluation equipment available.
Special zone companies were able to verify the safety of their developed products at an international level and significantly improve product quality, thereby strengthening their export foundations.
Ha Inseong, President of Gyeongbuk TP, stated, "The entry of the innovative prototype developed in the Gyeongbuk Smart Green Logistics Regulation-Free Special Zone into the overseas procurement market is a remarkable achievement that proves the synergy of regional technological capabilities and special zone infrastructure. Gyeongbuk TP will continue to provide full support so that the excellent technologies developed by special zone companies can lead to tangible business results in both domestic and international markets."
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