Interview with Oh Sun-cheol, Director General of Gwangju Global Motors, a Tenant Firm in Gwangju Free Economic Zone

Q1) Please introduce yourself.

This is Oh Sun-cheol, the director general of the Gwangju Global Motors Business Support Division.

Q2) Could you tell us about Gwangju Global Motors?

Gwangju Global Motors is a Gwangju-type job-creating company established with the purpose of revitalizing the local economy and creating jobs for Gwangju residents. We are based on the cooperation between labor, management, citizen, and government and is the nation's first shared growth local job-creating company. In short, we specialize in automobile consignment production based on cooperation between labor and management for mutual prosperity. Through labor-management agreement, we have 37 shareholders, including Gwangju City, Hyundai Motor Company, financial institutions, and local companies.

We are equipped with a facility that produces 100,000 units per year on a site of about 600,000 square meters in the Bitgreen National Industrial Complex located on the border between Gwangju City and Jeollanam-do. The construction started in December 2019, completed in a year and four months, which was April 2021. We have been producing cars since September 15th. Currently, we are producing Casper, a compact SUV commissioned by Hyundai Motor Company, and employ about 570 workers.

Q3) What are the strengths of Gwangju Global Motors?

We are based on cooperation between labor and management for mutual prosperity. We have a structure in which labor and management can coexist through dialogue and compromise without confrontation or dispute, and its greatest strength is to produce the highest quality based on state-of-the-art facilities, flexible systems, and the newest eco-friendly facilities. We expect that the company will increase our competitiveness by improving the existing corporate structure of high cost and low efficiency.

Q4) Please introduce the compact SUV Casper, launched in September 2021.

The first car produced by Gwangju Global Motors, Casper, is an SUV with a 1,000CC engine. It has a wide range of space utilization and a confident, sturdy design. Casper offers car camping capability, which is very popular among the younger generation and female customers. It is a compact car with great fuel efficiency, provides benefits such as tax and insurance, and Gwangju Global Motors' technological prowess also seems to satisfy the customers' expectations. In particular, its strength is the enhanced safety features, such as prevention of forward collision and lane departure, as well as lane-keeping assistance, which are basic options offered at the top quality among compact vehicles.

Q5) Will Casper models be available overseas?

Hyundai Motor Company is in charge of automobile sales. I believe it will gradually expand its sales network overseas.

Q6) Are there any companies or industries that would benefit from moving in nearby?

Gwangju Global Motors is a company specializing in automobile consignment production. We are supplied with free parts from Hyundai Motor Company. I think there would be a synergistic effect if highly competitive companies move in to supply auto parts in a nearby area.

Q7) Please tell us about the vision and future plans of Gwangju Global Motors.

Gwangju Global Motors has a production facility for 100,000 units per year. We are securing more sites to allow an additional 100,000 units depending on customer demand.

We are a company specializing in automobile consignment production that is currently producing Hyundai Casper. But we have flexible production facilities that are capable of producing various types of vehicles, including electric and hydrogen vehicles, as well as any other vehicle model from overseas in response to changes in the automobile market demand and environment. We will continue to cooperate for the consignment production of new models in the future.

Q8) As a company located in Gwangju, what are the advantages and disadvantages of the location?

Although Gwangju is located far from the Seoul metropolitan area and has a weak regional industrial structure, it has abundant industrial land, a nearby national university, and an excellent workforce through industrial-educational cooperation. I believe it has enough potential for industrial development. It is quite significant that a new job-creating company based on the cooperation between labor, management, citizen, and government for mutual prosperity was established in Gwangju. 

Through the pursuit of labor and corporate mutual prosperity by realizing appropriate wages and job stability, which will create new jobs and revitalize the local economy in turn, we will bring significant changes in Korea's industrial economy.

Q9) The area where Gwangju Global Motors is located has been designated as the Gwangju Free Economic Zone. Are there any expectations for the Gwangju Free Economic Zone in the future?

As the home of Kia Motors, in addition to Gwangju Global Motors, Gwangju is the Mecca of the automobile industry. It is also leading the production of eco-friendly vehicles. A lot of automobile-related parts companies are located within the jurisdiction of the Gwangju Free Economic Zone Authority. We hope GJFEZ Authority would help create an environment conducive to business, such as advancing the industrial base through technological improvement for tenants to develop their competitive edge. Also, attracting investment for promising companies, expedited processing of various licenses and permits, and providing more information would be very much appreciated.