Japan’s Cutting-edge Manufacturers Heading for Korea

The delegation of Investing Korea Gyeonggi Province (the group’s chairman and Gyeonggi Governor Sohn Hak-gyu) said on November 17 that he visited Japan on November 15 and 16 and succeeded in attracting $456 million, or 503.8 billion won, from Japanese companies.

During his visit, six companies have expressed their intention to invest in Korean companies, which comprise five TFT-LCD parts and components manufacturers and electronic materials manufacturers, including NHT, M&S Finetech, Nissan Chemical Industries, Takeuchi, NEG, and one company known as “K,” which refused to reveal its identity.

“These Japanese parts businesses possess advanced technologies in areas such as TFT-LCD, and they will greatly contribute to the enhanced competitiveness of Korean businesses,” Gyeonggi Province explained.

In particular, NEG plans to invest $270 million, or some 297 billion won, to build a 55,000-pyong factory in the Foreign Business Zone in Dangdong adjacent to LG Philips plant in Paju, Gyeonggi Province. As a result, this region has emerged as the potential mecca for the TFT-LCD industry.

Also, Takeuchi, Japan’s third largest company in printed circuit board business, decided to invest $10 million, or some 11 billion won, to construct a 2,000-pyong manufacturing base at Hyeongok Foreign-Exclusive Industrial Complex in Pyeongtaek City.

In addition, Nissan Chemical Industries, a chemical electronic material manufacturer, agreed to push for building a 1,800-pyong factory at Choopal industrial complex in Pyeongtaek City, and M&S Finetech, the first company to develop two-sided glass polisher, is also looking to build a manufacturing base of 4,000-pyong at Hyeongok Foreign-Exclusive Industrial Complex.

The delegation of Investing Korea Gyeonggi Province anticipates that these investments by thesix companies will create more than 4,000 jobs.

In total, 46 foreign companies (the six above included) have decided to invest in Gyeonggi Province, whose investment will amount to $1.599 billion, or some 1.7589 trillion won.

Ki-Jeong Ko koh@donga.com