Hyundai Motor invests in factory with Gwangju

Hyundai Motor said Sunday it will invest over 50 billion won ($45 million) in a local car-manufacturing joint venture proposed by a municipal government.

On Tuesday, Hyundai Motor plans to sign an agreement with the Gwangju city government to become the second-biggest shareholder in the joint venture, which will produce vehicles under an original equipment manufacturing (OEM) contract for carmakers, a company spokesman said by phone.

The Gwangju government plans to build a 700 billion won car-manufacturing joint venture with capital of 280 billion won and a loan of 420 billion won and aims to complete the plant by 2020, he said.

Of the 280 billion won capital, Hyundai reportedly will foot 53 billion won and the remaining 227 billion won will be provided by the Gwangju government, making it the biggest shareholder.

Hyundai said it plans to have the plant produce mini cars with 1-liter engines in OEM contracts. The maker of the Sonata sedan and the Santa Fe SUV does not produce mini cars domestically.

YONHAP