Daegu City Signs Investment Agreement with Electric Vehicle Core Parts Company 'Koa Automotive'

Investing 76 Billion Won to Build Factory and Research Center

Hong Jun-pyo: "Active Support for Administration and Policy"

On the 2nd at 3 PM, Daegu City signed an investment agreement with Coa Automotive Co., Ltd. (CEO Kim Won-seok) at the Sanggyeok Office of Daegu City Hall to establish a dedicated research institute and manufacturing plant for driving motor cores, a key component of electric vehicles.

Coa Automotive Co., Ltd. is a specialized company producing driving motor cores, the core component of electric vehicle motors. They plan to invest 76 billion KRW on a 40,475㎡ site within the Daegu National Industrial Complex to build a dedicated factory and research institute that will serve as a global hub for eco-friendly automotive parts business, and relocate their headquarters from Uiseong-gun, Gyeongbuk to Daegu.

Coa Automotive was recently established by splitting off the eco-friendly vehicle driving motor division from its parent company, Goa Precision Co., Ltd., to secure business opportunities and become a leading company in the rapidly growing global automotive electrification parts market.

They produce driving motor cores, the core components of motors that serve as the heart of electric vehicles, and supply them to global automakers such as General Motors (GM), Ford, and Jaguar through LG Magna Powertrain.

Factory site where Koa Automotive, a core electric vehicle parts company, will be established.

To respond to the rapidly increasing global order volume, the company plans to operate the new Daegu factory, scheduled for completion in September 2024, as a specialized production plant for 1 million eco-friendly vehicle parts annually. They aim to expand not only their existing driving motor core business but also new businesses such as low-power driving motors, hyperloop tracks, and rail projects. Aligning with the local development of the future mobility motor industry, they plan to grow into a global Top 10 driving motor parts company with sales of 1 trillion KRW by 2030.

Earlier, Daegu City declared 2023 as the inaugural year for its full-scale leap as a future mobility-centered city. To lead the future mobility industry that will drive Daegu’s next 50 years and the ‘Daegu Rise (大邱?起),’ the city plans to establish a mobility motor specialized complex centered on electric vehicle motors. This includes differentiated strategies supporting testing, certification, commercialization, fundamental technology development, innovation in materials and parts, and workforce training, focusing on creating a future mobility industry ecosystem.

Starting with Coa Automotive’s large-scale investment, Daegu City plans to strategically attract additional promising motor-related companies. Through value chain integration from motor materials and parts to modules, the city expects to accelerate the establishment of the region’s top domestic production base for key electric vehicle components.

Wonseok Kim, CEO of Koa Automotive

Kim Won-seok, CEO of Coa Automotive, said, “We expect synergy effects through collaboration with Daegu City’s fostering policies such as the mobility motor specialized complex. Through this investment, we will focus on cultivating a specialized organization and the motor, a core component of electrification, as a clear and strong growth momentum to grow into a global-level specialized company for eco-friendly vehicle parts representing the region.”

Hong Joon-pyo, Mayor of Daegu, said, “The investment by Coa Automotive, a leading domestic motor core manufacturer, will be a signal for Daegu’s full-scale leap as a future mobility-centered city. We will spare no administrative and policy support to help the company grow into a leading eco-friendly vehicle key parts company representing not only Daegu but also the Republic of Korea.”

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