The Suzhou branch of POSCO is located at the Suzhou Industrial Park. [Photo/sipac.gov.cn]
Suzhou in East China's Jiangsu province has become a hot spot for South Korean investors in recent years.
Statistics show that as of 2021, South Korean businessmen had established 2,429 enterprises in Suzhou. The city's actual use of South Korean capital amounted to $5.69 billion, accounting for 32.6 percent of the province's total.
South Korea's POSCO, one of the world's largest steel-makers, built its Suzhou branch in 2005, enticed by the city's good business environment and favorable policies for scientific and technological innovation. The company mainly works to produce motors for home appliances for companies such as Samsung and LG.
In order to find more business opportunities in the new-energy vehicle industry, the company bought land for its new-energy vehicle drive motor research and development and production base in the Suzhou Area of the China (Jiangsu) Pilot Free Trade Zone in 2021.
With a planned investment of $150 million to $200 million, the base will cover 8 hectares to provide motors for well-known auto parts and vehicle companies. The company will produce 150,000 new-energy vehicle motors in 2022, and its annual amount is expected to reach 900,000 in 2025.
HL Klemove, a wholly-owned subsidiary of South Korea's Mando Group, will spend 860 million yuan ($127.14 million) building its third phase in Suzhou New District. It is involved in the production of high-end smart car electronic products and new energy vehicle supporting products, including radars, lasers, front camera modules, and acoustic vehicle warning systems.
In 2021, trade between Suzhou and South Korea was valued at $43.98 billion, accounting for 52.3 percent of the province's total. By 2021, enterprises based in Suzhou had invested in 73 projects in South Korea, with total contractual investment of $198 million, accounting for 36.56 percent of the province's total.