Kim Dong-yeon Secures First Chinese Enterprise Investment During Eighth Popular Elect Term

[Suwon Ilbo=Reporter Kim Gap-dong] The first investment achievement from a Chinese enterprise during the eighth popular elect term has been realized.

Gyeonggi Province Governor Kim Dong-yeon signed a 60 billion won secondary battery investment agreement with Zhongrui Korea on the 26th in Nanjing, Jiangsu Province, China.

The agreement stipulates that Zhongrui Korea will establish a secondary battery component manufacturing facility valued at 60 billion won on approximately 21,200 square meters of land within Pyeongtaek's Oseong Foreign Investment Zone.

Zhongrui Korea is a joint venture established between Zhongrui Electronics, a Chinese secondary battery component company, and K&NS, a South Korean secondary battery automation equipment manufacturer. Chinese Zhongrui Electronics invested 70%, and South Korean K&NS invested 30%.

Governor Kim Dong-yeon stated, "I promised to attract 100 trillion won in investment during my term, which is expected to be achieved around next month. While capital from the United States, Japan, and Europe has been flowing in, this is the first Chinese investment," adding, "It is meaningful that this initial capital investment is entering advanced industries like secondary batteries." He further stated, "Gyeonggi Province will provide maximum support and assistance for business activities."

Yan Tingzhu, Vice President of Zhongrui Electronics (headquarters), also stated, "The investment in Zhongrui Korea is just the beginning," and "We plan to continue with more investment in the future." He added, "We will do our best to improve cooperative relationships with Governor Kim Dong-yeon and Gyeonggi Province."

Qian Zheng, Sales Vice President of Zhongrui Electronics (headquarters), also said, "Today's agreement ceremony is an important step that goes beyond a simple MOU signing to lead economic cooperation in the secondary battery industry," and "We look forward to working closely with Gyeonggi Province and making a leap forward together."

This investment agreement is likely to serve as a signal for increased Chinese investment in South Korea.

During the past three years of the Yoon Suk-yeol administration, investment attraction from China was challenging due to strained Korea-China relations and increased global uncertainty. However, since the launch of the Lee Jae-myung Citizen Sovereignty administration, bilateral relations have returned to a normal trajectory.

◇Effects of Zhongrui Korea Investment

Following the signing of the investment agreement, the secondary battery component manufacturing facility in Pyeongtaek's Oseong Foreign Investment Zone is scheduled to begin construction as early as the first quarter of next year and be completed around the end of that year.

Secondary batteries are rechargeable batteries that can be reused after being discharged. Demand for them is rapidly increasing as they are widely used from mobile and IT devices to electric vehicles and energy storage systems.

The facility will produce 'Topcap Assembly,' a secondary battery component. As its name suggests, the topcap assembly, which forms the upper part of a battery, is a critical component that ensures electrical connectivity and prevents explosions.

With this investment agreement, 150 new jobs are expected to be created and production capacity capable of generating 50 billion won in annual sales is anticipated. Major customers include LG Energy Solution and global electric vehicle companies.

◇Secondary Battery Industry in Gyeonggi Province, 'The Heart of South Korea'

The province is the center of South Korea's secondary battery industry. According to 2023 Statistics Korea data, there are 1,073 businesses (32.6% of the nation) related to the secondary battery industry in Gyeonggi Province, and the workforce of 30,854 accounts for 18.7% of the nation. The province ranks first nationwide in both the number of businesses and workforce.

As uncertainty regarding global supply chains increases, the expansion of supply chains for major secondary battery components by Korean and Chinese enterprises is considered highly significant.

It is hoped that this agreement will serve as a stepping stone for Gyeonggi Province to become an international hub for the secondary battery industry at the heart of South Korea.