Hyundai invests in Gwangju
President Park Geun-hye speaks with Hyundai Motor Group Chairman Chung Mong-koo while touring an “automobile startup idea zone” at the Creative Economy Innovation Center in Gwangju, Tuesday. / Yonhap
By Lee Hyo-sik
Hyundai Motor Group has opened a “Creative Economy Innovation Center” in the southwestern city of Gwangju, a first step toward creating a next-generation automobile industry cluster.
Korea’s largest automaker plans to foster industries related to hydrogen-powered vehicles, and nurture startups in the areas of advanced auto parts and clean energy.
The group will also raise 177.5 billion won in cooperation with the Gwangju City Government and a group of investors to support its business partners and venture firms, as well as to create jobs for the regional economy.
The company held a ceremony Tuesday to mark the opening of the center. President Park Geun-hye, Hyundai Automotive Group Chairman Chung Mong-koo and 100 other high-profile guests attended the event.
“Hyundai Motor will offer substantial assistance in the whole process of corporate growth, ranging from development of ideas to industrialization to making inroads into global markets,” Park said at the ceremony.
Hyundai said the innovation center will help build an automobile industry ecosystem and promote industries relevant to hydrogen-powered vehicles.
It consists of two main facilities.
The first facility, located next to the Gwangju Institute of Science and Technology on the outskirts of the city, is to provide support for startups in automobiles and hydrogen fuel technologies, and the manufacturing of test products.
The second one, in downtown Gwangju, is to implement a wide range of projects to promote small business owners and support culture and art activities in the community as part of efforts to boost the overall regional economy.
“Of the 177.5 billion won, the center will spend 52.5 billion won to support startups involved in various auto-related sectors, and to finance the development of new technologies,” a Hyundai Motor Group spokesman said. “About 15 billion won will be used as financial assistance to venture firms developing hydrogen fuel cell and other components of hydrogen vehicles.”
The center will also extend 100 billion won to small and medium-sized enterprises (SMEs) seeking to build a “smart factory” by introducing diverse information communication technologies to their production facilities.
About 10 billion will be spent to support the self-employed and other small businesses in the communities.
“The center will provide one-stop service for startups in the automobile industry, and gather innovative ideas and apply them to a production platform,” the spokesman said. “It also plans to set up an extensive automobile database containing technologies, patents and other information. Hyundai Motor Group will make its 1,000 patents public through the center in a bid to promote innovation.”
The automaker plans to share more patents with its small business partners and venture firms.
In addition, the center will be equipped with a wide array of devices enabling startups to design automobile prototypes and test them, making it easier for the development of innovative vehicles.
It will offer legal, financial and technical counseling to those seeking to start companies.
The Ministry of Justice has decided to dispatch employees to the center to provide legal counseling, while the Financial Services Commission will consult with startups about finance-related matters. Hyundai Motor is responsible for offering technical assistance.