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Daegu Metropolitan City has succeeded in attracting Bosch, a world-leading German automotive parts manufacturer, to the city’s national industrial complex. Bosch and Kyung Chang Industrial Corp. agreed on a memorandum of understanding (MOU) to establish KB Wiper System (KBWS), thereby attracting significant investment to Daegu. Daegu announced the investment agreement at Daegu City Hall (2F Control Room) at 11:30 a.m. on June 2.
○ In January 2016, KB Wiper System will begin the construction of a comprehensive wiper system manufacturing facility, the first of its kind in the world, on a site spanning over 20,000 pyeong (approximately 66,000 square meters) within the Daegu National Industrial Complex. The factory is expected to be completed by September and enter full-scale operation by the end of 2016.
○ The project has attracted investments totaling KRW 200.0 billion, including KRW 110.0 billion in new investment, and aims to generate KRW 300.0 billion in revenue by 2020. Furthermore, it is expected that the project will lead to significant job creation. It will not only bring in some 700 incumbent workers, but will also recruit new employees in the future, raising expectations that it will generate a considerable number of new jobs and attract people to Daegu from around the country.
○ The investment is the culmination of years of effort by Daegu and Kyung Chang Industrial Corp. (President Son Il-ho), a local business, to attract the German enterprise Bosch, a world leader in technology and services. According to an analysis, Daegu’s well-established infrastructure, including its intelligent automotive parts testing facilities and national research institutes, namely the Daegu Gyeongbuk Institute of Science and Technology, appealed to Bosch’s desire to lead the development of future-oriented automotive parts. Furthermore, the customized support provided by Daegu, including its comprehensive business support, pro-business labor culture, and reasonable real estate prices, further compelled Bosch to invest in the city.
○ This achievement was the result of Daegu’s continuous efforts to solicit global companies in connection with the development of its national industrial complex. It is particularly meaningful as it was achieved through Daegu’s policy for shared growth with local businesses, its customized investment proposal designed to satisfy Bosch’s needs, and its policy to nurture the automotive parts, machinery, and metal industries, which have now become the major industries of the regional economy.
○ By bringing Bosch to the area, Daegu has managed to further strengthen its position as a major automotive parts manufacturing region. Existing companies in the industry in Daegu include Kdac, jointly invested in by Delphi Corporation and Daewoo International, Valeo Pyeong Hwa, and Hyundai Cummins Engine Company.
○ Based on the investment agreement, KB Wiper System will actively work to vitalize Daegu’s regional economy and accelerate job creation, while Daegu has promised to provide the necessary administrative and financial assistance required for the establishment of the company and its corporate activities, including the provision of land within the industrial complex to construct the manufacturing facility, together with the Daegu-Gyeongbuk Regional Division of the Korea Land and Housing Corporation.
○ Daegu Mayor Kwon Young-jin commented, “We will provide cooperation and support to ensure that KB Wiper System, with the investment from Bosch, grows into a global automotive parts and materials company representative of Daegu,” and went on to say, “Based on this success, we will devote greater effort to attracting even more global companies to Daegu.”
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