Gwangju Global Motors and Subway Line 2 Bring 'Vitality' to Gwangju's Economy

Gwangju Global Motors Complete Vehicle Factory Construction Site

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] The Gwangju Global Motors automobile factory and the construction of Urban Railway Line 2 are revitalizing the local economy, which has been stagnant due to the prolonged COVID-19 pandemic.

Moreover, these projects, which have been actively promoted since the 7th local government administration, are significant as they are key initiatives necessary for creating large-scale jobs in Gwangju and establishing a future-oriented public transportation system.

According to Gwangju City on the 18th, Gwangju Global Motors, which has completed factory construction and entered trial operation, has hired 385 employees and is currently in the process of recruiting 137 new technical staff.

Among the 385 employees already hired, 90.9% are from the Gwangju and Jeonnam regions, and it is expected that the majority of the new technical recruits will also be local residents, proving that Gwangju Global Motors is providing valuable quality jobs to local youth as originally intended.

Additionally, among the 44 equipment companies involved in the automobile factory construction, 42 (98%) are from the Gwangju and Jeonnam regions, and of the total 137,209 person-days of labor input, 109,354 (79%) were local workers.

Among the 54 companies involved in architecture, civil engineering, electrical, and mechanical work during the factory construction, 30 were local companies, and 62.8% of the subcontracted construction costs (direct construction costs) were paid to local companies.

Furthermore, Gwangju Global Motors has mandated that over 30% of the ingredients used in the on-site cafeteria come from local food suppliers, and more than 70% of the cafeteria staff are hired from the local community.

The Urban Railway Line 2 construction project, which will play a key role in future public transportation, is also bringing a positive breeze to the local economy.

In the construction sector, among the seven contracts worth 487.9 billion KRW, including the first phase main line sections 1 to 6 ordered in September 2019 and the first phase vehicle depot construction ordered in June 2020, joint contracts with Gwangju companies account for 140.2 billion KRW, and among subcontract contracts worth 331.9 billion KRW, Gwangju companies hold 70%, or 231.8 billion KRW.

In the mechanical and electrical sector, among 13 contracts totaling 16.7 billion KRW?including three grounding works on the first phase main line, four relocation works of underground facilities, and six vehicle depot works?Gwangju companies participate with 76%, or 12.7 billion KRW. Also, for the first phase main line electrical works, including three transmission and transformation works, six general electrical works, and three catenary works, Gwangju companies’ participation amounts to 61%, or 24.8 billion KRW, out of a total of 40.9 billion KRW.

The Urban Railway Construction Headquarters is actively encouraging participation by excellent local companies through mandatory joint contracts to expand local company involvement.

According to the current ‘Local Government Bidding and Contract Execution Standards,’ for joint contracts, a minimum construction participation rate can be specified in the bidding announcement within a range not exceeding 49% to promote local company participation, and the ‘Ordinance for the Promotion of Local Construction Industry Activation’ recommends a subcontracting rate of 70% or more for local construction companies.

Accordingly, for the first phase civil engineering and architectural works, the Urban Railway Construction Headquarters divided the orders into the vehicle depot and six sections, achieving a 70% subcontract participation rate by local companies.

Furthermore, for subsequent electrical, mechanical, and communication works, relaxing bidding qualifications and dividing sections resulted in a 76% participation rate by Gwangju companies as of the 7th.

Meanwhile, Gwangju City plans to accelerate core projects preparing for the future, such as the Gwangju-type 3 New Deals in digital, green, and human sectors, and initiatives to make Gwangju a better place to have and raise children, to prepare for a major transformation in the post-COVID-19 era.

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