Dispelling the doubts of the Korean industry! Magna announced to invest 500 billion won in Korea in the next five years

According to THE ELEC, Magnachip recently stated that it will invest 500 billion won (about 444 million U.S. dollars) in R&D and construction facilities in South Korea in the next five years. This move will create 2 trillion won of economic output for the local area.

It is reported that Magna will invest 340 billion won in its research centers in Seoul and Cheongju, South Korea. The company will also maintain cooperation with local universities and provide 100 million won in scholarships each year.

Following last year's investment of 38 billion won, Magna will invest another 93 billion won in the Gumi plant over the next five years. The plant mainly produces power management chips, and will also produce field effect transistors (FETs), super junction MOSFETs and IGBTs for home appliances, communications and industrial fields in the future.

The South Korean company said it may invest an additional 110 billion won on top of the current investment plan if the power semiconductor market performs well. The capital expenditure will include benefits for local employees in South Korea.

A joint statement from the company's union and president confirmed the investment plans.

South Korean media pointed out that the industry is worried that local Korean employees may face unemployment after Wise Road Capital completes the acquisition of Magna. Magna's latest statement is a response to these concerns.

South Korea's Ministry of Trade, Industry and Energy is expected to reach a conclusion this month on whether Magna has mastered the country's core technology. This latest investment case may further dispel the government's doubts. By then, China's Zhilu Capital will take over Magna's display driver IC business.