Hyundai Motor Starts Production Of SUV Cars In Cooperation With The Government, President Moon Jae-in Joins In Ordering

JAKARTA - Gwangju Global Motors (GGM), a joint venture between Hyundai Motor and the Gwangju Metropolitan Government, will start mass production of its first model car, the Casper compact SUV, Wednesday 15 September.

The mini-SUV that will be produced is in the spotlight, as it is the first joint venture in the era of President Moon Jae-in's administration, to support the proposed job creation.

Where Hyundai Motor builds car factories and the central and local governments pay for financial support and welfare packages. This is inseparable from a deal with the country's biggest automaker, which aims to revive the regional economy while helping companies reduce labor costs.

Under the agreement, GGM employees receive an average salary of 35 million won (29,880 US dollars) per year for a 44-hour work week. To support the relatively low wages, the central and local governments provide various supports such as housing, welfare and child care facilities for employees.

Given that GGM is the first example of a job creation model being put into practice, industry officials say its successful establishment is expected to bring about significant changes not only to the domestic auto industry but other manufacturing sectors as well.

Meanwhile, last Tuesday Hyundai Motor said it began taking online preorders for the Casper, while actual sales will begin September 29. Consumers are showing great interest, with the ordering site crashing shortly after ordering begins.

Interestingly, President Moon is also taking part in online ordering, with the South Korean Presidential Office (Cheong Wa Dae) saying he managed to order his own Casper. Cheong Wa Dae spokesman Park Kyung-mee said Moon ordered the Casper compact SUV because he plans to use it after his presidency ends.

"President Moon Jae-in has ordered the Casper mini SUV, which was produced in Gwangju this morning online, the first day of the application for advanced orders. Casper has been purchased by President Moon for personal use and will continue to be used after retirement," Park explained, citing the Korea Times September 14.

"Starting with GGM, eight local governments have agreed to establish the so-called Gwangju-type employment model," the spokesperson said, adding, "they are expected to attract a total investment of 51 trillion won and create about 130,000 jobs."

So far, GGM has employed 539 employees, with 93.4 percent of whom are from Gwangju and the nearby metropolitan city area in South Jeolla Province, South Korea, the company said.

The company plans to increase its employee base to around 1,000 by next year, adding it expects to create about 11,000 indirect job opportunities as well.

Ever since Hyundai unveiled the mini SUV image, consumers have shown great interest due to its "cute" image and low price range. To note, this is the first vehicle that Hyundai sells only through online channels in Korea.