North Gyeongsang Province and Gumi City said on the 3rd that they signed a 500 billion won investment memorandum of understanding (MOU) with precision parts company Jahwa Electronics.
About 30 officials, including Vice Governor Hwang Myeong-seok of North Gyeongsang Province, Gumi Mayor Kim Jang-ho, and CEO Kim Chan-yong of Jahwa Electronics, attended the signing ceremony.
This agreement is the first large-scale investment deal North Gyeongsang Province has concluded since the launch of the ninth popularly elected administration. Under the agreement, Jahwa Electronics will build a new production plant for mobile electronic device camera modules in the Gumi National Industrial Complex 1 in Gumi City. To that end, it will invest a total of 500 billion won over four years from this year through 2029. After the new plant is built, the creation of 400 new jobs is also expected.
The optical system control and drive components produced by Jahwa Electronics are core precision parts responsible for smartphone camera functions such as autofocus (AF), optical image stabilization (OIS), and optical zoom. As demand for high-magnification optical zoom (folded zoom) and OIS has surged, particularly in premium smartphones, the global camera module market has grown to 55 trillion won.
Founded in 1987, Jahwa Electronics is a leading domestic precision parts specialist. Based on advanced ball-type drive technology, it has secured a position in a globally oligopolistic market. Since 2023, it has supplied core components for the flagship model of its largest North American client, and exports account for more than 90%.
This investment is also an expansion of production capacity to proactively respond to supply volumes of core parts for the next model of a North American global client. With the new plant, Jahwa Electronics plans to secure production capacity for 100 million camera actuators.
Vice Governor Hwang Myeong-seok said, "This investment is a strategic response to the expansion of the global IT market and a meaningful investment that elevates the competitiveness of North Gyeongsang's electronic components industry by a notch," adding, "We will form a one-team with Gumi City and spare no active support with a mindset of taking responsibility for the investing company to the end."
CEO Kim Chan-yong said, "With this investment, we will contribute to revitalizing the local economy and creating quality jobs, and we will develop Gumi into a global advanced industry manufacturing hub."