Gwangyang City Sets Goal to Attract 3 Trillion Won Investment This Year

Last Year, 22 Companies Attracted Investments Worth 2.7503 Trillion KRW

Advancing Regional Industry Structure and Creating Jobs Through Attraction of Quality Companies

Gwangyang City, Jeollanam-do, is launching customized domestic and international investment attraction activities this year with the goal of attracting investments from 20 companies totaling 3 trillion won.

Last year, the city achieved a record high by securing investments worth 2.7503 trillion won from 22 companies, including major investment agreements with POSCO Lithium Solutions Co., Ltd., POSCO Future M Co., Ltd., and Jeonnam Cloud Data Center Co., Ltd.

Gwangyang Port Hinterland [Photo provided by Gwangyang City]

By attracting high-quality companies, the city has advanced the regional industrial structure and created quality jobs desired by local youth. On the 22nd of last month, it won the grand prize in the investment attraction category at the ‘2023 Jeollanam-do Job and Economy Festival,’ marking the fourth consecutive year of awards following the grand prize in 2020, excellence award in 2021, and grand prize again in 2022.

Additionally, the city is focusing on attracting related companies to establish a secondary battery material value chain that covers raw material supply, processing, material production, and recycling of waste batteries, positioning itself as the undisputed hub of the secondary battery material industry.

Last year, POSCO Lithium Solutions Co., Ltd., which produces secondary battery lithium hydroxide, invested 575.1 billion won in the Yulchon Industrial Complex; POSCO Future M Co., Ltd., producing cathode materials, invested 1.13 trillion won; Narada Energy, manufacturing LFP battery ESS, invested 60 billion won; and Carbo Co., Ltd., producing secondary battery remanufacturing and ESS in the Sepung Industrial Complex, invested 25 billion won. The total investment by secondary battery anchor companies amounted to 1.7901 trillion won, accounting for 65% of the total investment.

In addition, POSCO HY Clean Metal Co., Ltd., which recycles waste batteries to process 12,000 tons of black powder annually and extract lithium, nickel, and cobalt, was completed in July last year in the Yulchon Industrial Complex. In November, the POSCO Philbar Lithium Solution plant, producing 43,000 tons of lithium hydroxide annually, was also completed.

The POSCO Future M Co., Ltd. cathode material production plant in the Yulchon Industrial Complex, the largest single factory in the world, produces 90,000 tons of cathode materials annually, enough for batteries for approximately one million high-performance electric vehicles.

Furthermore, SNN Co., Ltd. is producing high-purity nickel in the Donghoan area of the Gwangyang National Industrial Complex, and CIS Chemical Co., Ltd. is producing cathode materials and precursors in the Sepung Industrial Complex.

Based on this, the city plans to cluster secondary battery anchor companies and future core materials and parts companies in the Donghoan site, Sepung Industrial Complex, and Hwanggeum Industrial Complex, aiming to become a hub for new industries in South Korea.

In the development sector, the city has established a foundation to supply industrial complexes in a timely manner at the Sepung Industrial Complex and Donghoan site.

The Sepung Industrial Complex public development project passed the central investment review by the Ministry of the Interior and Safety, and regulatory relief in the Donghoan site of the Gwangyang National Industrial Complex will enable rapid support for investments in advanced industrial fields.

The city plans to continue investment attraction and job creation by conducting feasibility studies and surveys for industrial complex development to establish new industrial complexes early within the region.

In the investment support sector, the city plans to carefully support stable settlement of investment companies by fully revising the investment promotion ordinance from the perspective of investing companies.

By improving the investment environment significantly with differentiated investment burden relief measures from other local governments, including site development, water and power supply infrastructure, and post-management of investment companies, the city will actively attract corporate investments in battery industries as well as steel, port industries, and related upstream and downstream industries.

The city utilizes various subsidy support systems from the Ministry of Trade, Industry and Energy and Jeollanam-do to revitalize unsold industrial complexes and facilitate smooth settlement of investment companies. It also monitors investment trends and information of potential investors through investment attraction advisors composed of businesspeople and experts.

Expanded subsidy support policies, such as support for issuance fees of performance guarantee insurance certificates and site subsidy support for the Ikshin Industrial Complex, reduce the burden on investment companies and create a ‘business-friendly city’ environment.

Jung In-hwa, Mayor of Gwangyang City, said, “In a situation where the threat of local extinction is growing, the reason our city was able to bear fruit in investment attraction based on the policies we have been focusing on is because related officials showed a united and firm will and passion to attract companies.” He added, “In 2024, we will actively attract regional strategic industries and future growth industries to demonstrate that ‘company attraction is the key to urban growth.’”

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr

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