Gumi City Makes Its First Major Move Under the 9th Administration... Attracts 500 Billion Won Investment

Jahwa Electronics to Expand Production Base by 2029
400 New Jobs Created, Cumulative Investment Reaches 1 Trillion Won
Gumi Accelerates Its Pursuit to Become a Global Electronic Components Hub

With the launch of the 9th popularly-elected administration, Gumi City has achieved a major investment attraction, sending a strong signal to the region's industrial economy.

Gumi, which has declared its transformation into a hub for semiconductors and advanced electronic components, has succeeded in securing its first investment agreement—a super-large-scale project worth 500 billion won—thus accelerating its efforts to strengthen its competitiveness in future industries.

On July 3, Gumi City, together with North Gyeongsang Province and Jahwa Electronics Co., Ltd., signed a memorandum of understanding (MOU) at City Hall to establish a production facility for advanced optical system drive and control products.

(Left) Kim Chanyong, CEO of Jahwa Electronics (Right) Kim Jangho, Mayor of Gumi at the Memorandum of Understanding (MOU) Signing Ceremony for Investment [Photo by Gumi City]

Under the agreement, Jahwa Electronics will invest a total of 500 billion won in the Gumi National Industrial Complex No. 1 by 2029 to build a new production plant and create 400 new jobs.

This agreement is highly symbolic as it marks the first successful investment attraction since the launch of the 9th popularly-elected administration. Above all, it is evaluated as reaffirming the market's confidence in Gumi's industrial competitiveness, as the city managed to attract additional large-scale investment from a leading domestic electronic component company despite a sluggish economy and a global contraction in manufacturing investment.

Jahwa Electronics is a company with global competitiveness in actuator technologies for core smartphone camera components, including autofocus (AF), optical image stabilization (OIS), and folded zoom. With the expansion of AI features and the growth of the premium smartphone market, demand for high-value-added optical components is increasing, requiring expanded production capabilities. In this context, the company has once again selected Gumi as a key production base.

This investment is particularly significant because it goes beyond a simple factory expansion, representing the intersection of Jahwa Electronics' long-term growth strategy and Gumi's manufacturing competitiveness.

Jahwa Electronics previously invested 250 billion won in Gumi in 2021, hiring about 800 new employees, and planned an additional investment of 250 billion won and 200 new hires in 2025. Including this latest 500 billion won investment, the total scale of investment in Gumi reaches 1 trillion won, with direct employment exceeding 1,400 people.

It is not an easy decision for a company to continuously expand its production base in the same region without strong confidence in the business performance and investment environment. With the concentration of the electronics and components industry, excellent industrial infrastructure, and a skilled technical workforce, Gumi is further solidifying its role as a global production base for Jahwa Electronics.

The economic ripple effects are also expected to be significant. In addition to direct employment, a chain reaction of production is anticipated among partner companies, equipment and materials suppliers, logistics, and the local commercial sector. It is also expected to positively impact the training of specialized personnel in collaboration with local universities and the expansion of youth employment.

Having achieved its first investment attraction under the 9th popularly-elected administration, Gumi City plans to continue its strategy of attracting investments focused on future high-tech industries. The city aims to strengthen its status as a leading high-tech industrial city in Korea by expanding corporate investments in future manufacturing sectors such as semiconductors, AI, and electronic components.

Kim Jangho, Mayor of Gumi, stated, "This large-scale investment by Jahwa Electronics once again proves that Gumi is Korea's representative city for advanced electronics and components industries. Starting with this first investment agreement under the 9th administration, we will accelerate efforts to attract companies in future industries, driving regional economic growth and creating quality jobs."

The company responded with investment, and Gumi City has earned the trust signified by 1 trillion won. Ultimately, the success or failure of the 9th administration will be judged by its track record in attracting investment.

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