Joylong Automobile, a Chinese electric vehicle manufacturer, signed a memorandum of understanding with Gwangju Metropolitan City on Wednesday to build its first overseas production line.
It is the first time for a foreign EV maker to tap the Korean market for its production base abroad.
Gwangju City Mayor Yoon Jang-hyun (center) signs a memorandum of understanding with Joylong Automobile vice president Ou Yangguang (left) for the plant building project, at Gwangju City Hall on Wednesday.
Under the memorandum, the Chinese EV maker, located in Yangzhou, Jiangsu province, will push for a plan to build an EV manufacturing plant with an annual production capacity of 100,000 units by 2020.
When the 250 billion won ($213 million) investment plan is realized as planned, Joylong Automobile will produce EVs in Korea, targeting Korea and Southeast Asian markets.
More foreign investors in the auto sector will tap into Gwangju, as the city has improved business conditions for carmakers under the goal of becoming a mecca for the auto industry in Korea, industry watchers said.
By Seo Jee-yeon (email@example.com