The First Win-Win Job Model of 2020... Keywords: 'Busan' 'Electric Vehicle Core Components'

Busan-Type Job Win-Win Agreement Ceremony Held... 7th Agreement
President Moon: "Aim to Be the World's No.1 Future Car Nation by 2030"
760 Billion KRW Investment and 4,300 Jobs Expected by 2031

Korens EM Cluster Aerial View (International Industrial Logistics City Section 8)

[Asia Economy Reporters Kim Bo-kyung and Son Sun-hee] Busan City has kicked off this year's win-win regional job agreement. It is the seventh since the 'Gwangju-type Job' agreement reached in January last year. This agreement is significant in that a mid-sized company, which initially planned to establish a core electric vehicle parts manufacturing plant in China, chose the 'Busan-type Job' project. It is expected to create about 4,300 jobs within a stable structure of 100% overseas export of mass-produced products over the next 10 years.

President Moon Jae-in attended the Busan-type Job win-win agreement ceremony held at Busan City Hall on the 6th and stated, "Through the Busan Port connected to 150 countries worldwide, we will export electric vehicle parts to the global market and become the world's number one country in future car competitiveness by 2030." President Moon said, "The pride of the Busan-type Job is that it has evolved beyond labor-management coexistence to coexistence between primary and subcontractors," adding, "The economic vitality that started in Busan will spread nationwide to overcome the novel coronavirus infection (Wuhan pneumonia) and achieve a 'win-win leap,' and we will work vigorously with the region."

Corens, an automobile parts company, considered entering China to produce electric vehicle powertrains but ultimately decided on the Busan-type Job. This decision came after Busan Mayor Oh Keo-don personally met with Corens Chairman Jo Yong-guk to encourage entrepreneurial spirit and persuade domestic investment. A powertrain is a device that provides power to electric vehicles and is a core part responsible for the engine and transmission functions in conventional cars. Corens established a subsidiary called Corens EM to carry out this project.

Starting this month, Corens EM will begin construction of an electric vehicle core parts manufacturing plant on a 99,000㎡ (30,000-pyeong) site in the International Industrial Logistics City in Gangseo-gu, Busan. It has signed a powertrain supply contract with global company B and plans to produce a total of 4 million powertrains from 2022 to 2031, exporting 100% of them. The estimated annual sales scale is 1.5 trillion KRW. By 2022, it will invest 208.2 billion KRW to complete the construction of the plant and research facilities and directly employ 605 people. Including about 20 partner companies, it will invest 760 billion KRW and directly employ 4,300 people by 2031.

The government and local governments aim for a triple effect with the Busan-type Job: ▲advancement of eco-friendly vehicle technology ▲co-growth of labor-management and primary-subcontractors ▲regional economic development. The goal is for primary and subcontractor companies to jointly develop technology and grow together in a fair and horizontal culture. Corens plans to eliminate abusive practices such as price-cutting to subcontractors and guarantee subcontractor workers' wages up to 80% of the primary contractor's wages.

The Busan-type Job is the largest investment and employment project in Busan since Renault Samsung Motors' investment. It is expected to boost Busan's economy through tax revenue and exports, creating about 3 trillion KRW in regional gross domestic product (GRDP) annually over 10 years. Busan City aims to provide a new breakthrough for the stagnating automobile parts industry in the southeastern region and establish itself as an export base for future vehicles.

Meanwhile, the revised National Balanced Development Special Act (Balanced Development Act), which serves as the basis for designating and supporting win-win jobs, will take effect on April 5. After going through procedures such as project feasibility evaluation and review and resolution by the deliberation committee, projects officially selected as win-win jobs will receive government support. The government offers incentives such as property tax and acquisition tax reductions, expanded investment tax credits, and local investment promotion subsidies to companies creating win-win jobs.

This content was produced with the assistance of AI translation services.