GANGWON-DO < invest Korea

According to Yonhap News,

(WONJU=Yonhap News) Business relocation to Wonju City of Gangwon Province is recently bouncing back after being stagnant due to deregulation of metropolitan areas and prolonged economic downturn.

Wonju City will enter into memorandums of understanding (MOU) with apparel company Chic Co. and industrial valve manufacturer K2N for investment in Wonju Enterprise City at Wonju City Hall on November 11, 2016.

The two companies will invest a total of KRW 10.8 billion won to build production lines and hire 105 local talents, which will greatly contribute to revitalizing the local economy and creating jobs.

Chic Co. had been supplying apparel products to well-known sports brands such as EXR (EXR Korea) and FUBU (Cheil Industries) before its manufacturing facility in the Kaesong Industrial Complex was abruptly shut down in February 2016. As it struggled to meet demand, the company decided to move into the Wonju Enterprise City.

Construction work for the company's plant is scheduled to begin in April 2017 and finish in October same year. The clothing manufacturer also plans to hire 90 new employees by 2020.

K2N, manufacturer of special coating valves for industrial use, started its business in Wonju in 2012. As demand grows on the back of recent expansion of overseas markets such as China and Taiwan, the company decided to make new investment in Wonju Enterprise city to expand its production lines and logistics facilities.

It plans to invest a total of KRW 5 billion won in the city and start construction in March 2017. After the construction work completes in October 2019, the company will hire 15 new workers.

As the Gwangju-Wonju 2nd Yeongdong Expressway, which connects the metropolitan area and Wonju with the shortest distance, was opened on November 11, distance between two regions was reduced by 15km compared to the existing Yeongdong Expressway and the travel time was reduced by 23 minutes. Such change in transportation infrastructure is expected to revitalize the local economy.

"This investment agreement is all the more meaningful in that it is to support existing local business and companies undergoing difficulties due to the shutdown of the Kaesong Industrial Complex," Won Chang-mook, Mayor of Wonju said. He further added that "We expect the investment will crate synergy effect invigorating the regional economy and generating jobs."

ryu625@yna.co.kr

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