Overview of the Gumi Foreign Investment Zone

The Gumi Foreign Investment Zone started as a zone designated by the Ministry of Commerce Industry and Energy as a business complex dedicated to foreign businesses on November 6, 2002. It was additionally designated as an industrial complex dedicated to materials and parts on March 9, 2009. As of September, 2020, the Gumi Foreign Investment Zone is home to a total of 24 foreign-invested businesses, consisting of 12 complex-type businesses, 7 parts-type businesses, and 5 individual-type businesses.

The Gumi Foreign Investment Zone is situated in the Gumi National Industrial Complex No. 4 and 5, and its total area is 1,684,009 m2. Two parcels for complex-type businesses (102,000 m2) and four parcels for parts-type businesses (714,000 m2) are currently not leased and open for investment. The total production amount and export amount of the Gumi Foreign Investment Zone are KRW 2.4 trillion and USD 1.28 billion, and it currently employs over 3,600 employees.

By country, Japan is the largest investor with a share percentage of 61%, followed by the U.S. (14%) and Luxembourg (10%), both with three enterprises, and then by Germany (7%), China (4%), and Austria (4%). Toray Advanced Materials Korea Inc., AGC Fine Techno Korea Co., Ltd. and Luminous Korea are three of the total 17 Japanese enterprises based in this Zone, and there are four U.S. companies, namely, Coorstech Korea and Musco Korea.

The Gumi National Industrial Complex a high-tech industrial complex centered on high-tech materials, mobile display, new and renewable energy in the carbon industry, and electronic medical devices for the defense industry, and is home to numerous large corporations, including Samsung Electronics, Samsung SDI, LG Electronics, SK Siltron, LG Display, Toray Advanced Materials, Hanwha Systems, and LIG, as well as 3,300 small and medium-sized enterprises.
Source: Documents on the current state of Korea Industrial Complex Corporation, and promotional materials of Gumi City Hall

Customized investment attraction

Gumi-si is now taking big steps forward for the next 100 years amid the COVID-19 pandemic. It has developed a customized investment attraction strategy to reinvigorate the Complex No. 5, which has struggled to attract investors since the establishment of the Complex, and also amended its ordinance to make the city more conducive to doing business and to attract Korean companies currently based abroad.

Gumi-si has attracted the investment of LG Chem for creation of jobs within the Complex No. 5 under the customized investment attraction strategy, and has entered into an MOU with KEPCO E&C and KOWEPO, which together plan to invest KRW 1.2 trillion to create approximately 150,000 construction jobs over the next three years. Furthermore, based on the amended ordinance for investment attraction, Gumi-si is focusing on attracting investment from both domestic and foreign companies and, in particular, domestic companies currently based abroad but are interested in returning to Korea.
Source: Daekyung Ilbo, “Gumi Industrial Complex taking big steps forward with customized investment attraction strategy” by reporter Bo-Su Nam

Industry diversification and SOC construction for the 20s and 30s of Gumi-si

The Gumi National Industrial Complex is now facing a turning point of change, centering on large-scale national projects such as the smart industrial complex creation project, the industrial complex renovation project, and the Gumi-type Jobs. As the industrial structure is rapidly reorganizing, the Complex is increasingly attracting attention as an investment destination for both domestic and foreign companies.

Small and medium-sized businesses in the region are actively making joint investments in new industries, including AI, 5G, hologram, carbon fiber, defense, automotive electronics, and healthcare. Gumi-si’s business support department provides one-stop consulting services for these businesses, meaning the investors continue to be well cared for after their investment. It has an excellent SOC-based environment suitable for the inland’s largest industrial complex, and the accessibility of the Gumi National Industrial Complex, Complex No. 5. in particular, is expected to further improve when the construction of the Buk-Gumi IC is completed in October of 2021 and the access road section 1 for the Complex No. 5 is complete in December of 2024.
Source: Daekyung Ilbo, “Gumi Industrial Complex taking big steps forward with customized investment attraction strategy” by reporter Bo-Su Nam

By Korea Industrial Complex Corporation

(Daegu-Gyeongbuk Regional Headquarters Business Service Team)