Two Japanese firms including Toray to invest $120 million in Korea as ties blossom

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Two Japanese firms including Toray to invest $120 million in Korea as ties blossom

Published: 22 Apr. 2024, 18:15

JIN EUN-SOO
jin.eunsoo@joongang.co.kr

Korean Industry Minister Ahn Duk-geun, left, and his Japanese counterpart Ken Saito shake hands before a meeting in Tokyo on Monday. [YONHAP]

Japan's Toray Industries and another chip material company are investing a total of $120 million in Korea amid continuously warming ties between the two countries.

Toray's latest investment will fund the construction of aramid textile manufacturing facilities in Korea scheduled to be completed by 2025. The facilities will also later be used to make high temperature-resistant meta aramid textiles for EV motors.

"Japan is one of Korea's top four trading partners and a core partner in supply chain cooperation," said Industry Ministry Ahn Duk-geun Monday while on a visit to the Japanese capital.

Toray made its foray into Korea in 1963, having invested more than 5 trillion won ($3.6 billion) into the country. Its manufacturing materials range from carbon fiber and advanced plastic to a separator for EV batteries.

During his Japan visit, the industry minister also held talks with a Japanese chemical company related to anodes about it building a manufacturing plant in Korea.

"Setting up manufacturing facilities for anodes in Korea, a product the country is import-reliant on, will be of great help in stabilizing the supply chain," said Ahn.

"The government will roll out full-fledged support for this anode-related investment project, which will take the form of establishing a joint venture with a domestic company."

Ahn on Monday met with Ken Saito, Japanese minister of economy, trade and industry, to talk about the two countries' follow-up measures on agreements in the industry, trade and energy sectors as well as future collaboration plans. It was the first official meeting of the ministers from Seoul and Tokyo in six years.

Ahn also held talks with Toshiki Kawai, CEO of Japanese chip equipment company Tokyo Electron.

Korean companies doing business in Japan including SK hynix, Korean Air and LG Electronics attended a meet-up event organized by the Ministry of Industry to talk about ways to expand their exports in the country.

"For Japanese export expansion, the Korean government will roll out tailored support and continue with communication on a government level," Ahn said at the event.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]