– Continued development of the high-end industries anticipated with an accelerated introduction of foreign investment 

○ Gyeonggi-do is realizing the best trade performance in its history by housing investment of $973 million from 30 foreign companies during the first half of the year. The provincial delegates including Governor Sohn Hak-gyu, assemblymen, representatives of labor unions, and civil servants will be dispatched to Detroit, US and Tokyo, Japan for the fifth investment housing event featuring high added-value automobile and TFT LCD parts industries between September 2 and 7. 

○ The provincial delegates plan to have meetings with 5 companies including 3M in the US and 6 companies including Hitachi Metal in Japan and finalize investment memorandums. Approximately $135 million is expected in investment from 11 companies in the field of high-tech TFT LCD and automobile parts. Indices predict generation of 1,500 new jobs, yet the real number is expected to exceed 1,800. 

○ Provincial governor Sohn Hak-gyu led the CEO-oriented investment housing activities in Europe, Japan, and the US 4 times in the first half of the year. He was able to bring R&D facilities of Del Phi and Siemens and investment by the US automobile parts companies such as Johnson Control, TRW, TI-Automotive, and Metal Dine, and Japanese TFT-LCD parts companies such as Hoya and ULVAC. 

○ Investment housing activities by the province that targets the parts industry are expected to bear valuable fruits taking the fact that the weak parts & material industries are accountable for the extended economic recession in Korea despite the export growth in the automobile, semiconductor, and TFT-LCD industries into consideration. 

○ A considerable portion of the 30 companies who finalized their investment contracts are TFT-LCD parts company (11), automobile parts company (6), and R&D facilities (4). They mostly make import substitution investment to observe an extended economic effect of improved trade balance and transfer of related high-end technology as well as direct employment and stabilized supply. 

○ Gyeonggi-do’s active effort to eliminate obstacles to investment by directly supplying the land positively affected the trend of investment by foreign companies. Large-scale investment by parts companies as well as the end TFT-LCD manufacturers such as LG Phillips and Samsung Electronics in Paju and Tangjeong Plants also played an important part for this change. 

○ The province secured 5-1,400m2 lots in a timely manner to fully utilize the advantage from its proximity to the Seoul Metropolitan area in Hwaseong and Pyeongtaek. These lots were offered to 29 foreign companies including Borg Warner, and 5 companies including Ildong Electric are now in the process of building their plants; 18 additional companies are scheduled to launch construction during the second half of the year. 

○ Gyeonggi-do is putting forward the utmost effort to facilitate smooth operation of foreign plants through resolution of any administrative problems. 

○ For example, the province mediated the exchange of construction lots within the rental complex to allow Smimoto Chemical, a Japanese manufacturer of TFT-LCD color filters, for the plant expansion worth $500 million. Smimoto was able to launch the expansion in March 2004 as scheduled. 

○ The province supported road construction necessary for the completion of the R&D facility construction of Del Phi Korea in collaboration with KHC. The company was experiencing much difficulty in meeting the schedule due to complication in land purchase. This incident is known to have changed the company’s perception on Korea’s civil servants. 

○ Gyeonggi-do was able to bring in large-size R&D facilities, design centers, and product development centers of 4 foreign companies by offering the Bundang Venture Building (9,900m2) in Seongnam at a lower price. 

○ Gyeonggi-do’s aggressive effort to host investment is expected to significantly contribute to related industries in Korea in the field of high-tech parts. Large companies such as Hyundai & Kia Motors, Samsung Electronics, and LG Electronics are paying much attention to the outcome of the province’s activities.