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Խù[The GPG continues to attract large investments in 2017 1H, with a total investment of KRW 3,201.9 billion.]
TITLE The GPG continues to attract large investments in 2017 1H, with a total investment of KRW 3,201.9 billion.
NAME DATE 2017-07-14 14:35:21
MAIL gbinvest@korea.kr 
FILE ÷ 201707140235212989.png 201707140235212989.png
The GPG continues to attract large investments in 2017 1H, with a total investment of KRW 3,201.9 billion.

- Entered MOUs with 39 companies; 90.1% investments came from the manufacturing sector; with 5,047 jobs created
- USD 248 million invested by 14 foreign investors; most of the foreign investments came from Japan and the United States -

The Gyeongbuk Provincial Government (GPG; Governor Kwan-yong Kim) attracted KRW 3,210.9 billion investments in 2017 1H, which created 5,047 new jobs. This achievement comes at a time of an unfavorable economic environment caused by the surge of protectionism in the United States, China’s retributive actions against the THAAD deployment, the threats from North Korea, and the inauguration of the new government in South Korea.

The 2017 1H investments exceed 50% of last year’s total investments in the region, which is KRW 6,207.2 billion. This year, the province is expected to attract the largest investment amount in its history.

Of the 39 companies with which the GPG entered MOUs in 2017 1H, 6 primary industry companies invested KRW 29.3 billion, 30 secondary industry companies invested KRW 2,197.2 billion, and 3 tertiary industry companies invested KRW 211 billion. The fact that investments from manufacturers account for 90.1% of the total investment is consistent with the GPG’s purpose of promoting investments in the region.

By business areas, machinery/metal companies invested KRW 1,081.7 billion, IT/electric/electronic companies invested KRW 548.7 billion, automotive parts companies invested KRW 179.1 billion, chemical companies invested KRW 233.3 billion, energy companies invested KRW 212.9 billion, tourism service companies invested KRW 82 billion, and other companies invested KRW 99.8 billion. In 2017 1H, SK Materials invested KRW 150.8 billion in natural gas supply for semiconductor manufacturers, Ajin Industrial invested KRW 121.1 billion in automotive parts manufacturing, Samkwang Automotive invested KRW 105.0 billion in mobile phone parts manufacturing, and Cheongam Energy invested KRW 129.0 billion in photovoltaic generation. As these records show, the GPG has successfully secured investments for the fourth industry and new growth engine industries.

By areas, KRW 1,065.3 billion came from 2 Pohang companies, KRW 532.1 billion came from 3 gumi companies, KRW 326.1 billion came from 12 Gyeongsan companies, KRW 153.8 billion came from 2 Yeongju companies, KRW 145 billion came from 4 Euiseong companies, and KRW 86.8 billion came from 4 Andong companies.

As for foreign investments, in 2017 1H, 14 foreign companies invested USD 248 million in secondary cell, carbon, semiconductor gas, medical equipment, and other new growth industries. Specifically, Toray BSFF invested USD 46.45 million, Toray Advanced Materials invested USD 42.70 million, SK Showa Denk invested USD 9.17 million, Access Bio Korea invested USD 12.80 million, Korea Neutren invested USD 14.25 million, and LACO invested USD 99.20 million.

Of the foreign investment, USD 126 million came from Japan, USD 112 million came from the United States, and USD 8 million came from Germany; meanwhile, investments from China declined. This change reflects the government’s efforts to shift its foreign investment strategy in accordance with the current situation.

Deputy Governor of Economy Byeong-yun Wu commented that the IR Conference on June 29 has contributed to significantly changing the public’s perception of the investment environment in Gyeongbuk. He also promised that the GPG will provide any assistance, be it administrative or financial, required to help investors in Gyeongbuk focus on the successful implementation of their businesses, through which the government seeks to create jobs and revitalize the local economy.

<Outcome of GPG’s Investment Promotion Efforts>

Year 2014 2015 2016 2017 1H Note
Amount (KRW, billion) 4,370.4 5,651.7 6,207.2 3,201.9