Deliberation and Resolution of 3 Cases Supporting Foreign-Invested Companies in Secondary Battery Materials and Car Airbags

Ministry of Trade, Industry and Energy Holds '2020 3rd Foreign Investment Committee'
"Full-scale Launch to Attract Foreign Investment in Advanced Fields such as R&D Centers"

Secondary battery. (Photo by Asia Economy DB)

[Asia Economy Reporter Moon Chaeseok] The government is supporting two foreign-invested companies involved in key materials such as secondary battery cathode materials and automobile airbag inflators, and has approved the new entry of one foreign-invested company engaged in the advanced secondary battery cathode material industry.

The Ministry of Trade, Industry and Energy announced on the 30th that the "3rd Foreign Investment Committee of 2020" was held in writing from the 23rd to the 30th. Three agenda items, including support for foreign-invested companies in advanced fields and new entry into foreign investment zones (complex type), were reviewed and approved.

An official from the Ministry of Trade, Industry and Energy explained, "This Foreign Investment Committee is significant as it actively attracted domestic advanced industry investments from foreign-invested companies by reinvesting undistributed retained earnings following the amendment of the Foreign Investment Promotion Act in August."

Specifically, Company A, a leading company in the secondary battery cathode material sector, expanded its R&D center in Cheonan, Chungcheongnam-do, transforming it into a "Global R&D Center for Secondary Battery Material Development." Over the next five years, it plans to invest 36 billion KRW to secure a site in the Cheonan foreign investment zone and hire about 100 research personnel.

Company A decided on additional investment in consultation with its headquarters, recognizing reinvestment of undistributed retained earnings under the amended Foreign Investment Promotion Act.

Company B, a specialized manufacturer of "inflators," a core component of automobile airbags, will establish a joint venture with a domestic related company in Gimcheon, Gyeongsangbuk-do, and produce inflators domestically to supply demand sources. Over the next three years, it plans to invest 45 billion KRW to secure a site in the Gimcheon 1 General Industrial Complex and hire more than 100 production and research personnel.

Until now, most airbag inflators have been imported, but this investment is expected to replace imports and increase exports.

Company C, a secondary battery cathode material manufacturer, will build a new cathode material and precursor production plant in the Chungju foreign investment zone (complex type) to supply domestic and overseas demand. It plans to invest 47.6 billion KRW over the next five years and hire about 320 production and management personnel.

The Ministry of Trade, Industry and Energy proposed site locations, expedited permits and approvals, and offered local tax and customs duty reductions through joint consultations among the government, local governments, and KOTRA to induce investment decisions. The Foreign Investment Committee’s approval led to the companies’ final investment decisions.

An official from the Ministry said, "Going forward, we plan to continuously discover and attract investments for the 'global factory of advanced industries' through clean and safe K-quarantine achievements and friendly institutional operations for foreign investment."

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