Jeonbuk's 1.2 Trillion Won Investment Deal Falls Through... 64 Companies Yet to Break Ground

Provincial Councilor Kim Donggu Blasts Lax Post-Investment Oversight
Longbai Korea Project Stalled for Third Year... Calls for Comprehensive Review

After a corporate investment worth 1.2 trillion won secured by Jeonbuk State ultimately fell through, it emerged that 64 companies had signed investment agreements but had yet to begin construction. Critics say the state may have focused too heavily on touting its record of attracting large-scale investments while neglecting to verify and oversee whether those investments actually materialized.

Kim Donggu, a member of the Jeonbuk Special Self-Governing Provincial Council.

On November 13, Councilor Kim Donggu (Gunsan 2) of the Jeonbuk Special Self-Governing Provincial Council called for an overhaul of the state’s post-agreement management system for companies, citing the collapse of GEM Korea’s investment agreement during a 2026 administrative audit of the Jeonbuk State Corporate Attraction Support Office by the council’s Economic, Industry and Construction Committee.

According to Kim, Jeonbuk State classified GEM Korea’s 1.2 trillion won investment project as being at the “occupancy contract” stage when it submitted audit materials in mid-October. Just a few days later, however, news emerged that the company’s investment agreement had ultimately fallen through.

Kim said, “It is questionable whether Jeonbuk State properly monitored the likelihood of the company following through on its investment until the large-scale investment agreement fell through.” He called on the state to disclose the reasons for the withdrawal, the discussions held to keep the agreement in place, and its efforts to attract replacement investment.

Delays in projects by other companies that had signed investment agreements also came under scrutiny.

Longbai Korea, which signed an investment agreement with Jeonbuk State on October 30, 2023, remains at the occupancy contract stage and has yet to begin construction, even after three years.

Longbai Korea is reportedly subject to contract termination for failing to fulfill its original employment and investment plans. Kim said the state should assess the possibility of further investment agreements being terminated and prepare countermeasures.

Materials Jeonbuk State submitted to Kim show that 64 companies have signed occupancy contracts after investment agreements but have yet to begin construction.

Of these, 12 companies had signed investment agreements in 2022 or 2023 but remain at the occupancy contract stage, while three others have been under construction for an extended period since breaking ground.

By contrast, some companies began building factories relatively soon after signing investment agreements.

Doosan broke ground in December 2022, five months after signing an investment agreement in July of that year. LS-L&F Battery Solution also broke ground about six months after signing an agreement in August 2023 and is now operating, according to the materials.

Kim argued that the reasons for prolonged project delays should be analyzed on a case-by-case basis, given the substantial differences in investment progress among companies.

Kim criticized the state, saying, “Even taking into account that investment conditions differ from one company to another, if we cannot determine why some companies break ground quickly while others remain at the occupancy contract or construction stage for years, it is difficult to call the policy effective in attracting businesses.”

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