Published: December 18 2023
Hanon Systems, a leading South Korean automotive supplier, will invest HUF 43 billion (EUR 112 million) to create 250 new jobs in Hungary. The investment will be supported by the state and will contribute to the expansion and development of the company's manufacturing facilities in Székesfehérvár, Pécs, and Rétság.
HUF 43 billion investment and job creation
Hanon Systems will invest HUF 43 billion (EUR 112 million) in Hungary, with support from the state amounting to HUF 5.7 billion (EUR 14.8 million). This investment will lead to the creation of 250 new jobs in the country.
Fierce competition and the rise of Eastern companies
Minister of Foreign Affairs and Trade Péter Szijjártó highlighted the increasing competition in Europe for investment from large Eastern companies. He emphasized that Eastern companies, including those from South Korea, have caught up and are setting the pace in many industries. The high dependence of Western manufacturers on Eastern suppliers in the growing electric car industry has contributed to this trend.
Openness to East-West economic cooperation
Hungary is actively promoting East-West economic cooperation and sees it as an opportunity for growth and development. Minister Szijjártó emphasized the importance of creating bridges and opportunities for cooperation with Eastern companies, rather than putting up barriers. This approach has led to an increasing number of Asian companies, including South Korean ones, choosing Hungary as the location for their first European factories.
Growing South Korean investment in Hungary
South Korean companies are now the fourth largest investor community in Hungary. Bilateral trade between Hungary and South Korea has also seen a significant increase, with trade volumes up by more than 50 percent in the current year, reaching nearly USD 7 billion by the end of September.
Conclusion
The investment by Hanon Systems in Hungary will not only create jobs but also contribute to the development and expansion of the automotive manufacturing sector in the country. Hungary's openness to East-West economic cooperation has attracted increasing investment from Eastern companies, including those from South Korea, and has resulted in mutually beneficial partnerships.
Questions & Answers
What is Hanon Systems? Hanon Systems is one of South Korea's largest automotive suppliers.
Where will Hanon Systems create new jobs in Hungary? Hanon Systems will create 250 new jobs in Székesfehérvár (central Hungary), Pécs (southwestern Hungary), and Rétság (northern Hungary).
How much will Hanon Systems invest in Hungary? Hanon Systems will invest HUF 43 billion (EUR 112 million) in Hungary.
How much financial support will the state provide for Hanon Systems' investment in Hungary? The state will provide HUF 5.7 billion (EUR 14.8 million) in financial support for Hanon Systems' investment in Hungary.
What developments and capacity expansions will Hanon Systems carry out as part of the project? Hanon Systems will carry out various developments and capacity expansions as part of the project.
Will Hanon Systems provide training for workers? Yes, Hanon Systems is planning to provide comprehensive training for 200 workers.
Why did Hungary attract investment from Hanon Systems? Hungary attracted investment from Hanon Systems due to the increasingly fierce competition in Europe for investment from large Eastern companies, and the high dependence of Western manufacturers on Eastern suppliers in the electric car industry.
How has the global economic era changed in recent years? One of the main changes in the new global economic era is that the hegemony of the Western economy has disappeared, and Eastern companies have not only caught up but are now setting the pace in many industries.
What percentage of global investment was Eastern capital ten years ago? Ten years ago, 20 percent of global investment was Eastern capital.
Why does Hungary believe in fostering East-West economic cooperation? Hungary believes in fostering East-West economic cooperation because it attracts more Asian companies to choose Hungary as the location for their European factories, bringing advanced technologies and creating jobs.
What was the split of investment sources in Hungary last year? Last year, 48 percent of investment in Hungary was from Eastern Europe, 42 percent was from the West, and around 10 percent was from Hungary itself.
What is the current state of bilateral trade between Hungary and South Korea? Bilateral trade between Hungary and South Korea has seen a staggering increase, with volumes up by more than 50 percent this year, reaching nearly USD 7 billion by the end of September.
