Joint Venture Overview

  • Business period

    2018 – 2021

  • Location

    Bitgreen National Industrial Complex region (about 6㎢) ※About 4㎢ in total

  • Investment scale

    Approx. 575.4 billion KRW (equity 2,302 / borrowed capital 3,452)
    ※ Equity ratio : Gwangju City 21% (48.3 billion KRW), Hyundai Motors 19% (43.7 billion KRW), others 60%

  • Business expenses

    48.3 billion KRW (city expenses)

  • Project content

    Establishing a CBU Factory joint venture through joint investment with a private enterprise
    Establishing a new independent corporation in which Gwangju City, Hyundai Motors Co., Ltd, regional companies, and other financial investors participate as the shareholders

  • Automobile produced

    Compact SUV / production scale : Establishing a production line capable of manufacturing 100,000 units yearly

  • Employment

    Approx. 1,000 full-time employees

CBU Factory location map (within Bitgreen National Industrial Complex)

Type of the invited business

Type of the invited business Area (㎡) component ratio(%) notes(lease)
Automobile industry 1,533,586.8 57.9 69,452.2㎡

Area(㎡)

Classi
-fication		 Total Gwangju Hampyeong notes
Total 4,071(1,231 million pyeong) 1,847(558,000 pyeong) 2,224(672,000 pyeong) -
1st
phase		 2,644(800,000 pyeong) 1,847(558,000 pyeong) 797(241,000 pyeong) 1-1 area(1,931)
1-2 area(713)
2nd phase 1,427(432,000 pyeong) - 1,427(432,000 pyeong) -

Process Timeline

Conclusion of agreement(Jan. 31, 2019)
  • Investment agreement concluded between Gwangju city and Hyundai Motors
Invitation of investors(First half of 2019)
  • Establishment of strategies to invite investment
  • Information session for inviting investments
  • Invitation of investors
Establishment of joint venture(First half of 2019)
  • Final agreement concluded among the recruited investors
  • Preparation of the articles of association and appointment of CEO, finance manager, etc.
Establishment of factory(Second half of 2019~2021)
  • Purchase of land
  • Beginning construction – finishing construction (expected construction period: 21 months)
  • Pilot production – mass production