'Gumi-type Job' First Step... LG and Gyeongbuk Establish Secondary Battery Cathode Material Industrial Ecosystem

Employment of 8,200 and Direct Investment of 475.4 Billion KRW Expected
Establishment of Korea's Largest 60,000t Secondary Battery Cathode Material Plant
"Enhancing Supply Stability of Core Secondary Battery Materials"

Gumi High-Tech Valley industrial site view. (Photo by Gumi City)

[Sejong=Asia Economy Reporter Moon Chaeseok] The government announced that the groundbreaking ceremony for the 'Gumi-type Job' secondary battery cathode material factory, created through the joint efforts of Gyeongsangbuk-do, Gumi City, LG Chem, and others, was held on the 11th. It is expected to generate approximately 8,200 jobs, attract direct investment of 475.4 billion KRW, and enhance the stability of cathode material supply, a core material for secondary batteries.

Labor, management, civic groups, and government in Gyeongbuk and Gumi City signed a win-win agreement to attract a cathode material production factory in July 2019, when Japan's export restrictions on materials, parts, and equipment began. After two and a half years, this effort bore fruit with the groundbreaking of the factory. The largest domestic factory with an annual capacity of 60,000 tons will be constructed, enabling stable supply of cathode materials, which account for more than 40% of secondary battery material costs, to the industrial field.

LG Chem’s subsidiary LG BCM is participating in the Gumi-type job project. LG BCM will support partner companies with safety equipment and analytical devices, and establish an ESG (Environmental, Social, and Governance) fund and a win-win cooperation fund within the Gumi National 5 Industrial Complex. Together with local educational institutions such as Meister High School, Polytechnic, and Kumoh National Institute of Technology, they will operate specialized training courses and scholarship programs. They will promote labor-management coexistence by refraining from labor disputes and establishing a conflict mediation committee. The government plans to provide free rent for the national industrial complex for 50 years and simultaneously support local investment promotion subsidies.

The government expects to attract 475.4 billion KRW in investment over three years until September 2024. As major regional companies related to mobile and display relocated to the metropolitan area and overseas, Gumi Industrial Complex’s production value sharply declined from 44.8 trillion KRW in 2017 to 36.8 trillion KRW in 2020. A government official said, "If the full investment of 475.4 billion KRW is realized through the Gumi-type job project over three years, it is expected to generate 8,200 jobs, contributing to regional economic recovery and mitigating population outflow." He added, "In particular, the Gyeongbuk secondary battery industry ecosystem will be firmly established, including material production (Gumi, Pohang) - equipment production (Gumi) - secondary battery manufacturing (Gumi) - battery recycling (Gumi, Pohang)."

According to the government, a total of six regions including Gumi, Gwangju, Miryang, Hoengseong, Gunsan, and Busan have been selected as win-win regional jobs. The government expects to create about 4,000 direct jobs and attract approximately 2.3 trillion KRW in new investment.

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