Daeil Industries to build auto parts factory in Gyeongju, relocating production line from Vietnam

North Gyeongsang Province and Gyeongju City signed a reshoring investment MOU with Daeil Industries at Gyeongju City Hall on Monday.

About 20 officials attended the signing ceremony, including North Gyeongsang Province Deputy Governor for Economic Affairs Yang Geum-hee, Gyeongju Mayor Ju Nak-young and Daeil Industries CEO Moon Sang-in.

Under the agreement, Daeil Industries will invest 50.6 billion won ($35.6 million) between September this year and December next year to build a steel frame manufacturing plant for automotive seats on a site of more than 19,000 square meters within the Myeonggye 3 General Industrial Complex in Gyeongju's Naemnam-myeon.

The company said it will relocate its production line from Vietnam to the new domestic facility.

Founded in 1987, Daeil Industries is headquartered in Cheonan, South Chungcheong Province, and operates a first factory in Ulju, Ulsan, manufacturing automotive seat frames and industrial machinery.

The company posted sales of 102.9 billion won last year and employs 100 staff.

North Gyeongsang Province and Gyeongju City plan to expedite administrative procedures such as permits and licensing for the production line installation and will actively review fiscal support measures including reshoring investment subsidies.

"Daeil Industries chose Gyeongju as its new production base because it recognizes the city's competitiveness in the auto parts industry and the growth potential of the future mobility sector," Gyeongju Mayor Ju said. "We will actively support the company's successful establishment and investment."

North Gyeongsang Province Deputy Governor Yang said the province "will provide full support so that Daeil Industries can settle stably in Gyeongju and grow into a world-class automotive parts company."

Daeil Industries CEO Moon said the company would "strengthen production capacity and supply stability through the new Gyeongju factory and respond flexibly to the diverse needs of our customers."