Ministry of Trade, Industry and Energy

Having reshored from China in November 2022, the Korean automobile parts company Hwashin held the completion ceremony of its new plant today in Yeongcheon, North Gyeongsang Province.

Hwashin is a middle-market manufacturer and supplier of chassis and body parts for major automakers like Hyundai Motor, Kia, and Volkswagen. With the KRW 40 billion investment subsidy from the Korean government and local authorities, the company was able to establish facilities in the Yeongcheon High Tech Park District to produce over 100,000 units worth of electric vehicle (EV) battery pack cases and lightweight chassis parts (e.g., front cross member) per year. 

Hwashin has plans to produce battery pack cases and such future mobility parts at the new plant through an ₩80 billion fresh investment, which is anticipated to create 120 new hires and help stimulate the local economy and domestic investment. Moreover, Hwashin’s lightweight car parts manufacturing and strategic technologies on related materials, parts, and equipment (MPE) are expected to contribute to the Government’s supply chain stabilization policy.

This May, the Korean government announced the Reshoring Company Support Strategy 2.0 policy to invigorate the reshoring of companies in advanced industries through the employment of stronger incentives and a broader recognition range of reshoring. Notably, the state funding cap was heightened for companies with national high-tech strategic technologies, allowing those reshoring to Korea’s capital region to receive up to KRW 20 billion (up ₩5 billion) and those reshoring to non-capital regions to receive up to ₩40 billion (up ₩10 billion).