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More opportunities, a better investment environment- 2025-07-07 Valeo Kapec Announces Large-Scale Investment in Yeongcheon High-Tech Park District Valeo Kapec Announces Large-Scale Investment in Yeongcheon High-Tech Park District - KRW 160 billion invested to establish electric vehicle battery system assembly (BSA) production line - - MOU signed with Gyeongsangbuk-do, Yeongcheon-si, DGFEZ, and LH, expected to create 100 new jobs - The global automotive parts specialist Valeo Kapec Co., Ltd. has announced a large-scale investment in Yeongcheon High-Tech Park District. On July 7, Gyeongsangbuk-do, Yeongcheon-si, Daegu-Gyeongbuk Free Economic Zone Authority (DGFEZ), and Korea Land & Housing Corporation (LH) signed a memorandum of erstanding (MOU) with Valeo Kapec, outlining an investment of KRW 160 billion and the creation of 100 new jobs. The signing ceremony was attended by Lee Nam-eok, Head of the New Consolidated Airport Investment Office of Gyeongsangbuk-do; Choi Gi-moon, Mayor of Yeongcheon; Kim Byeong-sam, Commissioner of DGFEZ; and Shin Soon-cheol, CEO of Valeo Kapec, along with six other officials. Valeo Kapec, currently pursuing reshoring initiatives, plans to establish an electric vehicle battery system assembly (BSA) production line on a site of approximately 36,364 m2 within Yeongcheon High-Tech Park District from 2025 to 2030. The BSA is a complete battery pack that combines electronic components and a battery management system (BMS), enabling the battery to operate safely and efficiently in electric vehicles. High-capacity, high-efficiency battery systems are essential core components that determine the quality and perance of electric vehicles. Valeo Kapec, an affiliate of PHC Group, was established in 2017 as a joint venture (JV) between Korea Powertrain (foed in 1993) and France’s Valeo Group. The company operates its headquarters in Daegu, with manufacturing plants in Waegwan and Seongju, Gyeongsangbuk-do, as well as local subsidiaries in Mexico, China, Japan, and the United States. Its main products include torque converters, gear actuators, and engine pulleys. Among these, the torque converter is supplied to both domestic and international automakers, securing a dominant market position. ※ Torque Converter: A device that transmits engine rotational power to the transmission in automatic transmissions, enabling smooth vehicle starts, comfortable driving, and efficient shifting. ※ Gear Actuator: A key component that s or shifts gears in automatic or electronic transmission systems, contributing to improved efficiency and convenience. ※ Engine Pulley: A part that transmits engine rotational power to various vehicle components via belts, ensuring the smooth operation of electrical, cooling, and other systems. Meanwhile, Gyeongsangbuk-do was recognized as an outstanding local government for attracting reshoring companies by the Ministry of Trade, Industry and Energy (MOTIE) in 2024 and received a Prime Minister’s Commendation. Consequently, when applying for the reshoring investment subsidies in 2025, Gyeongsangbuk-do will receive an additional 5% in national subsidies compared to other local governments, reducing the local financial burden. Additionally, Gyeongsangbuk-do actively promoted investment incentives by holding “Reshoring Company Rotables” in August and November last year and the seminar on attracting reshoring and regional expansion companies on June 25 of this year. Shin Soon-cheol, CEO of Valeo Kapec, stated, “This investment marks a key turning point for Valeo Kapec to reemerge as a global leader in the electrification era, beyond being the global no. 1 automatic transmission torque converter company, through electric vehicle BSAs and energy storage systems (ESSs). We will continue to pursue sustainable development in cooperation with Gyeongsangbuk-do d on environmental, social, and governance (ESG) management and remain committed to corporate our social responsibility.” Lee Nam-eok, Head of the New Consolidated Airport Investment Office of Gyeongsangbuk-do, commented, “This MOU signing is a result of Gyeongsangbuk-do’s proactive efforts to attract businesses and is expected to generate significant ripple effects, such as attracting related companies and revitalizing the local economy. Gyeongsangbuk-do will ensure a stable investment environment for Valeo Kapec through active administrative and financial support.” Notice
- 2025-07-01 Gyeongsangbuk-do and Gimcheon-si Sign Investment Agreement with Kolon Industries, Inc. Gyeongsangbuk-do and Gimcheon-si Sign Investment Agreement with Kolon Industries, Inc. - KRW 30 billion investment to establish a synthetic leather (for automotive seat) production line - At 3:30 p.m. on the 1st, Gyeongsangbuk-do and Gimcheon-si signed a memorandum of erstanding (MOU) for investment with Kolon Industries, Inc. in the conference room of Gimcheon City Hall to expand its Gimcheon Plant 1. The signing ceremony was attended by Bae Nak-ho, Mayor of Gimcheon; Lee Nam-eok, Head of the New Consolidated Airport Investment Office of Gyeongsangbuk-do; Ahn Min-gwi, Plant Manager of Gimcheon Plant 1 of Kolon Industries, Inc.; and members of the Gyeongsangbuk-do Provincial Council and Gimcheon City Council. Kolon Industries, Inc., a leading global chemical materials company representing Korea, has played a key role in revitalizing the local economy since establishing Gimcheon Plant 1 in Eungmyeong-dong in 1997. It is also recognized as a major enterprise that represents Gimcheon. er this agreement, a total investment of KRW 30 billion will be made to expand the PU synthetic leather production facilities used for automotive seat components at Gimcheon Plant 1. This strategic investment is expected to create local jobs and revitalize the industry by responding to new orders and strengthening global competitiveness. Ahn Min-gwi, Plant Manager of Gimcheon Plant 1, stated, “Through this expansion investment, we will further enhance our production competitiveness, enhance our position as a global company, and continue to grow together with the local community as a responsible enterprise.” Bae Nak-ho, Mayor of Gimcheon, remarked, “I deeply appreciate Kolon Industries, Inc. for its bold investment despite difficult economic conditions both at home and abroad. We will do our utmost to create an attractive investment environment and administrative efforts to establish Gimcheon as a city where businesses want to invest and operate.” Lee Nam-eok, Head of the New Consolidated Airport Investment Office of Gyeongsangbuk-do, added, “As a first-generation company that led Korea’s economic development starting with the nation’s first nylon production, this investment will serve as a catalyst for the ‘AI Autonomous Manufacturing Leading Project.’ We will actively support its success, and Gyeongsangbuk-do is lowering barriers for businesses, so please feel free to reach out anytime.” Notice
- 2025-06-25 Gyeongsangbuk-do Hosts Seminar to Attract Reshoring and Regional Expansion Companies Gyeongsangbuk-do Hosts Seminar to Attract Reshoring and Regional Expansion Companies - Promotion of corporate attraction through guidance on reshoring support policies and local investment incentives - - Strengthening networks with companies and related organizations, with full efforts to attract, settle, and support reshoring companies - On June 25, Gyeongsangbuk-do held the “Seminar on Attracting Reshoring and Regional Expansion Companies” at Lahan Hotel in Gyeongju, targeting companies with overseas operations and those considering regional expansion. This seminar was organized to proactively respond to the increasing demand for reshoring due to the rapidly changing global industrial environment, including the U.S.–China trade conflict and supply chain restructuring, and actively promote local investment incentives to encourage corporate investment in the Gyeongsangbuk-do region. Presided over by Lee Nam-eok, Head of the New Consolidated Airport Investment Office of Gyeongsangbuk-do, the seminar was attended by aro 40 representatives from 22 companies, including Valeo Kapec Co., Ltd. The agenda included a presentation on reshoring support policies by the Korea Trade-Investment Promotion Agency (KOTRA), a success story of reshoring by Hwashin Co., Ltd., an introduction to local investment promotion subsidies by Korea Industrial Complex Corporation, and a session to hear companies’ concerns. In particular, unlike the reshoring company rotables held in August and November last year, this seminar was significant in that it expanded participation to include companies planning regional expansion. Rather than limiting the discussion to reshoring companies alone, the seminar also provided various support policies including local investment incentives and industrial complex site conditions, thereby encouraging companies to consider concrete investment plans. Meanwhile, Gyeongsangbuk-do was honored to be ed as an outstanding local government for attracting reshoring companies by the Ministry of Trade, Industry and Energy (MOTIE) in 2024, earning a Prime Minister’s Commendation. As a result, when applying for reshoring investment subsidies in 2025, the province will receive an additional 5% in national subsidies compared to other local governments, alleviating its local budget burden. Furthermore, Gyeongsangbuk-do has been ed as an “Outstanding Local Government for Local Investment Promotion Subsidies” for three consecutive years from 2023 to 2025, reducing local expenditure by approximately KRW 10 billion*. In particular, in 11 erdeveloped balanced development areas within the province**, the subsidy rate is increased by up to 10%, providing practical relief to companies investing in those regions. * A total of KRW 5.6 billion has been saved from 2022 to date (KRW 3.3 billion in 2023, KRW 2.3 billion in 2024), and an additional saving of about KRW 3 billion is expected in 2025. ** erdeveloped areas: Sangju, Mungyeong, Uiseong, Cheongsong, Yeongyang, Yeongdeok, Cheongdo, Seongju, Yecheon, Bonghwa, and Ulleung. Lee Nam-eok stated, “We will make every effort to attract reshoring companies through cooperation and communication with domestic parent companies, and we will also do our utmost to ensure that reshoring and regional expansion companies can successfully settle by reflecting the voices from the field.” Notice
