Gumi City and LIG Nex1 Sign 370 Billion Won Investment MOU

Establishing a Defense-Exclusive Production Base for Guided Weapons and Aerospace Systems
Creating 200 New Jobs
Strengthening Gumi's Status as a Core City of the Defense Innovation Cluster
Stabilizing the National Defense Supply Chain and Expanding Exports

On February 5, the city of Gumi in North Gyeongsang Province signed an investment memorandum of understanding (MOU) with LIG Nex1 Co., Ltd. in the main conference hall of Gumi City Hall and agreed to cooperate in establishing a defense-exclusive production base with a total investment of 370 billion won. This investment will also create 200 new jobs.

The signing ceremony was attended by Park Baeho, Vice President of LIG Nex1 Co., Ltd., Lee Cheolwoo, Governor of North Gyeongsang Province, Kim Jangho, Mayor of Gumi, Koo Jageun, Member of the National Assembly, and Park Gyosang, Chairman of the Gumi City Council, as well as about 30 provincial and city council members and heads of related institutions and organizations. They shared their commitment to cooperation for strengthening the competitiveness of K-defense and advancing the Gumi National Industrial Complex.

From left: Yoon Jaeho, Chairman of the Gumi Chamber of Commerce and Industry; Koo Jageun, Member of the National Assembly; Lee Cheolwoo, Governor of North Gyeongsang Province; Park Baeho, Vice President of LIG Nex1 Co., Ltd.; Kim Jangho, Mayor of Gumi; Koo Jageun, Member of the National Assembly; Park Gyosang, Chairperson of Gumi City Council / Provided by Gumi City Hall

Under this agreement, LIG Nex1 Co., Ltd. will build and expand defense-exclusive production plants. The production base will integrate the entire process of advanced defense production, including assembly of core components for guided weapons and aerospace weapon systems, performance testing, system integration testing, final assembly, and pre-delivery quality inspection and verification procedures. By establishing a complete production system encompassing research, manufacturing, testing, and mass production, Gumi will solidify its status not just as a simple production base, but as a "K-defense complete production hub."

Amid growing global demand for military modernization and heightened geopolitical tensions, international interest in K-defense and export opportunities are expanding. In this context, the investment carries national strategic significance by enabling a preemptive response to surging defense demand and supporting diversification of export destinations and product lines. It is also seen as an important turning point in securing a stable defense supply chain. In particular, as demand for advanced weapon systems such as guided weapons, precision strike systems, missiles, and unmanned systems increases in line with the government's force improvement plans, the production capacity and role of LIG Nex1 are becoming even more important.

The electronic and manufacturing, precision processing companies, skilled workforce, and stable supply chain infrastructure clustered in the Gumi Industrial Complex support rapid production scaling and the establishment of cooperative networks. In addition, this investment is expected to foster a new growth engine and a high value-added industrial ecosystem through convergence between the existing electronic and manufacturing industries and the defense industry, while creating quality jobs such as opportunities for young and technical talent, and promoting shared growth with local partner companies.

Mayor Kim Jangho of Gumi said, "This agreement is an important milestone for Gumi to leap forward as a core production base of Korea's defense industry and as a global export forward base for K-defense," adding, "We will work closely with related institutions and do our utmost to provide administrative and infrastructure support so that the investment can proceed without a hitch."

This content was produced with the assistance of AI translation services.