The Gwangyang Bay Area Free Economic Zone Authority signed a 20 billion won ($15 million) investment agreement with Mingtai Group during an investment promotion trip to China.
66.4 billion won (2023) → 192.8 billion won (2024) → 455.8 billion won (2025).
Gwangyang Aluminum Co., a manufacturer of non-ferrous metal products including aluminum sheets and foil, posted sales of 455.8 billion won ($342 million), operating profit of 50.5 billion won and net profit for the period of 53.1 billion won last year, cementing its place as one of the region's leading companies.
Backed by investment from China's Mingtai Group, Gwangyang Aluminum struggled with losses in the early years after its incorporation in 2018, weighed down by heavy fixed costs from facility investment. The company has since transformed into a highly profitable operation, driven by strong exports to North America and Southeast Asia.
The turnaround is largely attributed to rising exports to North America, particularly the United States and Canada. The company received an export award last year after surpassing $200 million in exports.
The company set itself apart from commodity aluminum producers by supplying North American customers with a checkered-pattern aluminum sheet it developed in-house — the first of its kind in South Korea.
Rather than simply expanding output — which stands at 160,000 metric tons per year — the company developed new products to open overseas markets, a move widely credited as the key driver of its sales growth.
Buoyed by strong exports and the resulting expansion in production and sales volumes, as well as improved operating profitability, Gwangyang Aluminum is now moving ahead with additional capacity expansion.
An investment attraction delegation from the Gwangyang Bay Area Free Economic Zone Authority visited China from Monday through Friday before returning home. The delegation called on Mingtai Aluminum — the parent company of Gwangyang Aluminum — at its headquarters in Zhengzhou, Henan Province, and signed an agreement for a 20 billion won investment to expand the Gwangyang factory's aluminum sheet processing facilities.
The factory expansion by Gwangyang Aluminum, a tenant of the Sepung Industrial Complex in Gwangyang-eup near Yeosu and Suncheon, is expected to help attract additional foreign manufacturers, as it represents a successful case of foreign direct investment in the region.
Investment Attraction Division Head Kim Cha-jin of the Gwangyang Bay Area Free Economic Zone Authority said the China trip was significant on multiple fronts. "Beyond follow-up consultations with semiconductor materials firms and identifying potential investors in the biotech sector, we also secured additional investment from an existing investor," Kim said.
parkds@heraldcorp.com
