Gyeonggi Province Strikes Gold in Japan
(July 20, 2011)

Three parts manufacturers sign an investment MOU worth USD 26 million

Poseung, Hyeongok, Oseong complexes of Pyeongtaek to start plant construction beginning at the end of 2011

– Governor Kim Moon-soo (left) and Toshihisa Sumimoto (center), director of Sumitomo Chemical, signed an investment MOU at the HQ of Sumitomo Chemical at Shinagawa in Tokyo on July 20th and posed for a celebration shot. Sumitomo Chemical agreed to invest USD 24 million in the Poseung complex in Pyeongtaek to build the next-generation touch sensor panel. (G News Plus)

A Gyeonggi Province delegation visited Japan from July 19th to 20th and succeeded in attracting investment worth USD 26.7 million for Pyeongtaek, which is considered the best location for business.

The delegation visited Tokyo and Yokohama to attend a promotional event for the electronics, IT, and semiconductor sectors and inked MOUs with Sumitomo Chemical (Tokyo), JTEKT (Osaka), and Valqua industries (Tokyo) worth a total of USD 27.73 million.

The three companies manufacture parts for cellphones, automobiles, and semiconductors, and are planning to hire 248 people on the strength of this investment.

The three companies agreed to invest in the Poseung, Hyeongok, and Oseong complexes, attesting to the heightened interest in foreign investment since Samsung’s decision to invest in the nearby Godeok complex.

Ninety percent of the total investment amount, i.e., USD 24 million, comes from Sumitomo. They will construct a touch censor panel manufacturing plant for cellphones through investment agent Dongwoo Fine-Chem and hire 80 people in the process.

As soon as the operation is running, it will manufacture next-generation touch sensor panels for smart phones and tablet PC screens, which should enhance the competitive edge of Korean smart phone manufacturers such as Samsung.

The smart phone market has enormous potential. According to surveys, one in three phones will be installed with a touch panel in the near future. Gyeonggi Province looks set to rise as a parts manufacturer of smart phones.

JTEKT, another investor, will build a bearing manufacturing plant for car water pumps early next year at the Hyeongok complex with a budget of USD 1.73 million, of which USD 1.33 million will come from direct foreign investment. This factory is expected to hire 108 people.

Valqua industries will spend USD 10 million on the construction of a plant in the Oseong complex, which will manufacture parts for semiconductors and hire around 60 employees.

Following the success in attracting investment, over 150 board members and staff from more than forty companies participated in the Gyeonggi Province Parts Investment Environment Presentation held in Yokohama on the 20th.

The presentation focused on attracting investment from Japan’s major electronic, IT, and semiconductor parts manufacturers. Hosted by Samsung and LG Display Co., Ltd. purchasing experts, it attracted a great deal of interest. They introduced the investment case of Sumitomo, a company that has successfully settled in Gyeonggi Province.

Gyeonggi Governor Kim Moon-soo said, “Compared with electronic powerhouses like Samsung and LG, Gyeonggi Province has almost no brand recognition power. We must heighten our investment potential in collaboration with Korean companies and discover new cutting-edge manufacturers for win-win outcomes.”

Japanese companies have invested heavily in Gyeonggi Province, ranking second only to the US. Ever since the 4th election, the Gyeonggi Provincial Government has sent delegations to Japan five times to tie investment deals worth a combined total of more than USD 52.8 million with 13 different companies.

Among the 85 companies that have moved into eight of Gyeonggi Province’s foreign investment company complexes so far, 41 (48%) were founded on Japanese capital of USD 83.2 million, which accounts for 71% of the total foreign investment.

The government devised specialized strategies to attract investment by providing incentives to Japanese companies and operating a TF team composed of purchasing experts and private specialists. An official remarked, “We were able to attract so much investment thanks to the TF team’s hidden efforts.”

-GNews Plus News | Nam Gyeong-u echo2008@kg21.net

http://gnews.gg.go.kr/news/news_detail.asp?number=201107201333167055C052&s_code=C052