▲ MOU Signing Ceremony

Win-Win Strategy with Foreign Companies to Create the Virtuous Circle of Local Economic Development

Chungcheongnam-do (Chungnam) has remained interested in the foreign investment attraction as a scaffold for local economic development. Chungnam has been focusing on attracting investments in four core business areas, including display, steel, cars, and petrochemistry along with a new renewable energy industry.

Cheonan City, Asan City, Seosan City, and Dangjin City have been putting their full efforts to attract businesses dealing in science and technology.

These efforts yielded tangible success. For instance, the Foreign Investment Zone inside of Cheonan Industrial Complex No. 5 was built to attract up-and-coming businesses which can create jobs. This complex with the size of 336,208 m² is located at Seongnam-myeon & Sushin-myeon, Cheonan City, whose municipal government designated this zone as a foreign investment complex on December, 2012.

On November 7th, 2014, JCU Korea, manufacturing a chemical agent which is used for plating cars, semiconductors, and smartphones, held a factory completion ceremony at the complex. About 100 people, the provincial governor An Heejung, and the president of JCU Korea, Mr. Yoshi Yama(粕谷 佳允) attended the ceremony.

Aside from JCU Korea, MSC Tech moved in and has already opened a factory within the complex. Conventya and JIOS also started constructing factories. Isel even made a contract for moving into the complex.

The direct investments from these companies amount to US$50,000,000. The total production is about 390 billion won, and the exports are estimated around 230 billion won to create jobs for 350 people, which remarkably strengthened the regional economy.

Contract Success with Three Global Companies despite World Economic Depression

Amid the increased expectations toward the Foreign Investment Zone of Cheonan Industrial Complex No. 5, Governor An Heejung accomplished outstanding achievements with attracting foreign investments when visiting the United States on November 15th through 21st.

Governor An signed contracts with three high-tech global companies and the investment amounted to US$47,000,000. The success of attracting investments from the U.S. seems very meaningful and successful considering the internationally-spread economic slowdown and shrinkage of investments.

On November 17th, the Governor An’s first successful negotiation was made in Oak Creek. Wisconsin at the headquarters of Bio Genesys Iron Resources Inc. (BGIR).

The BGIR’s chairman of Mohsen C. Amiran and Governor An signed a memorandum of understanding (MOU) to build a large-scale steel powder manufacturing plant in the 2nd Songsan Industrial complex with a direct investment of US$30,000,000 by the year 2015.

On November 18th, Chungnam also signed an MOU at Champaign, Illinois with Eden Park Illumination Inc. and NANOCMS Co. Ltd. in Korea. Eden Park Illumination Inc. and NANOCMS Co. Ltd. established a 50/50 joint venture, in which both parties plan to invest 14 billion won (including US$7million in foreign direct investments) to build a plasma lamp manufacturing plant at the Foreign Investment Zone of the Cheonan Industrial Complex No. 5.

On November 19th, Chungnam exchanged a copy of the MOU for an investment of about US$10,000,000 with the “A” company at Chicago. Chungnam analyzed the benefits which can be created from the investment attraction.

They expect to gain 1 trillion, 110 billion won in revenue for five years from now, an import-substituting effect of 465 billion won, jobs for 210 people, 2 trillion 178.3 billion won in production inducement effects, and the gross value added effects of 92,590 million won.

Chungnam signed 32 investment agreements for US$2,590,000,000 with foreign companies, which pushed the province to rank No. 1 with Foreign Direct Investment (FDI) among noncapital regions. Chungnam will continue attracting high value added industries and managing the post activities for all contracts made with foreign companies.