The general meeting of promoters for the Gwangju-type job model joint corporation, held at the Gwangju Institute of Green-Car Advancement. (August 20, 2019)Gwangju’s Mayor gave a commemorative speech at the general meeting of promoters for the Gwangju-type job joint venture automobile plant at the Gwangju Institute of Green-Car Advancement. (August 20, 2019)
| Name ‘Gwangju Global Motors Co. Ltd’ shows strong push toward global markets
| Confirmed articles of association and completion of incorporation will be this month… Ground-breaking scheduled this year, mass production from 2021
| Move towards becoming global company through links with eco-friendly automotive-parts clusters and AI industrial convergence complex
The automobile plant joint venture, the first Gwangju-type job model project, took a historic first step with its inauguration on August 20 at the Gwangju Institute of Green-Car Advancement conference room.
Over 150 people attended the inauguration ceremony including LEE Yong-sup, Gwangju Mayor, KIM Dong-chan, Chairman of Gwangju City council, along with representative of the three largest investors, BAE Jeong-chan, Director of Gwangju Institute of Green-Car Advancement, LEE Jun-young, managing director of Hyundai Motors; and SONG Jong-wook, Deputy President of Kwangju Bank, in addition to 35 representatives from the joint venture companies, local companies, auto-parts companies and financial sector investors.
As a result, the Gwangju-style job model project, which has been promoted as a grand social integration based on the principle of “fair wages, proper working hours, accompanied growth, and mutual cooperation” built on compromise between labor and management, is on track to implement the full-fledged project, following on from the experimental and preparation stages.
As a result of the meeting, the joint venture model project was named ‘Gwangju Global Motors Co. Ltd’.
Gwangju metropolitan city announced that the name Gwangju Global Motors Co. Ltd shows the business as being representative of the Gwangju-style job model, and having a strong focus towards ‘the global market’. The city also announced that the general meeting confirmed the appointment of former Gwangju mayor PARK Gwang-tae as the first president.
Former mayor PARK took office twice and was elected to the National Assembly three times. During his time in the National Assembly, he continued to serve as Chairman of the Commerce, Industry and Energy Committee, so his understanding of the automobile industry has led to expectations that he can stabilize the joint venture at an early stage. In addition, he is widely trusted by Gwangju labor management, and therefore considered to be the right person to realize the spirit of social compromise for the Gwangju-type job model and play a bridging role between the central government and economic circles.
The Gwangju Global Motors Co. Ltd articles of association confirmed on the same day clearly state that: “The company is established with the aim of complying with the principles of establishing a cooperative labor-management win-win model; maintaining fair wages; implementing appropriate working hours; promoting accompanied growth and mutual cooperation; and realizing communication and transparent management; based on the ‘Investment agreement of automobile plant business to stimulate the regional economy and produce sustainable workplaces’ signed by Gwangju Metropolitan city and Hyundai Motors on January 31, 2019”.
As already announced, the total business expenses for the joint venture automobile plant are 575.4 billion KRW, of which 230 billon KRW is equity share capital and 345.4 billion KRW borrowed capital. A total of 35 companies invested, with 48.3 billion KRW (21%) from the first major shareholder Gwangju Institute of Green-Car Advancement, 43.7 billion KRW (19%) from the second major shareholder Hyundai Motors, and 26 billion KRW (11.3%) from the third major shareholder Kwangju Bank. In addition, local enterprises including Booyoung Group Co. Ltd, Hoban Construction Ltd, and Jungheung Construction, plus automobile-parts companies including Howon Co. Ltd and G-geumgang Co. Ltd have made great efforts to invest in the plant.
Among the 230 billion KRW capital, 211 billion KRW (investment of 34 corporations) is the capital before the establishment and the remaining 19 billion KRW is invested by the Industrial Bank of Korea (IBK, issued LOC of 15 billion KRW on August 13) and Korea SMEs and Startups Agency when its stock increases after the establishment.
The joint corporation will start working within August by completing the registration of its corporate establishment immediately after the completion of all procedures including full payment of stock, holding a promoter’s general meeting, and the selection of its president. ‘Gwangju Global Motors Co. Ltd’ is expected to become a global automobile company through the synergy effect of operating in conjunction with the only eco-friendly auto-parts certificate center in Gwangju, the eco-friendly auto-parts cluster construction business of Gwangju Institute of Green-Car Advancement (303 billion KRW) and the AI industrial convergence complex construction business, which was exempted from preliminary feasibility studies in January.
“The Gwangju-type job model project is a grand social integrated job project for labor and management, which is unprecedented in the world,” said the mayor of Gwangju metropolitan city. “This project in not only a job creation project in Gwangju, but also a hope for the Korean economy to solve its structural ‘high cost and low efficiency’ problem and reinforce the competitiveness of the manufacturing industry.” He further continued, “We are worried about taking the road not traveled, but we will definitely succeed with the Gwangju-type job project as the mission of the era. Gwangju Global Motors Co. Ltd launched today purses eco-friendly, digitalized, and flexible operations to realize it three goals of sustainability, profitability, and expansion, to grow and develop into a global company based on solid trust and competitiveness.”