"Illegal Administration" and "Financial Loss"
Claims Are Misunderstandings Not Based on Facts
On December 9, Jinju City in South Gyeongsang Province addressed recent claims of "illegal administration" and "financial loss" related to the newly attracted KAI Rotary Wing Flight Center, clarifying that these are misunderstandings not based on facts.
Summary of the city's position and strategy for attracting strategic industries: Jinju City has made every effort to bring in strategic industries to overcome local challenges such as the concentration of resources in the capital region, talent outflow, and population decline. KAI's investment of 47.5 billion won is considered a rare and significant achievement among recent corporate attraction cases in Jinju.
Current operational status: The KAI Rotary Wing Flight Center completed its investment in December of last year and currently employs about 120 people. The center is operating normally, having begun with the maiden flight of the Marine Corps amphibious assault helicopter.
Refuting claims of financial loss: While additional costs were incurred during the process of acquiring industrial complex land, these were budgeted for expansion construction. The city explained that there will be no financial loss, as the entire amount will be recovered through an appraisal when KAI purchases the land in ten years.
Confirmation of legal administration: In response to claims that leasing manufacturing land was illegal, the city stated that Statistics Korea staff conducted an on-site inspection and confirmed that the Rotary Wing Flight Center is classified as a manufacturing facility, making the administrative action legal.
Audit results: The South Gyeongsang Province Audit Committee recognized the project's potential for expansion and its employment creation effect, determining that it met the requirements for exemption and decided to close the case without disciplinary action.
Future outlook: According to KAI's mid- to long-term plans, the city expects to establish an AAV (Advanced Air Vehicle) Demonstration Center and relocate rotary wing manufacturing facilities. The AAV Demonstration Center, scheduled for completion in the first half of next year, is anticipated to become a key hub that will enhance the region's competitiveness.
Jinju City stated, "Attracting the KAI Rotary Wing Flight Center is not simply about bringing in a company, but about clustering the aerospace and defense industries and strengthening the previously lacking industrial infrastructure in western South Gyeongsang. We will continue to meet citizens' expectations and build a sustainable future for Jinju over the next 100 years."
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