3. Establishment of POONGSUNG Precision Corp. as a joint venture company with NIPPONDENSO

(1) Development of Changwon National Industrial Complex

Light industry, which had led South Korea’s economic growth in the 1960s, reached its limit, and new growth momentum was needed in the 1970s. South Korea’s economic growth rate had stagnated without further improvement. Moreover, the first oil shock in 1973 caused great disorder and difficulty for the Korean economy.

Under these circumstances of economic depression domestically and abroad, the government decided to build Changwon National Industrial Complex in Changwon, South Gyeongsang Province in 1973 in order to upgrade the industrial structure from one centered on light industry to one centered on heavy and chemical industries, and started construction of the first complex in November of that year. In April 1974, the initial scale of the complex was determined to be 43,338,843 m2, and full-scale construction moved forward. The complex was later expanded and developed to 55,206,612 m2 and reborn as a general machine operator industrial complex.

As the development of Changwon National Industrial Complex progressed, POONGSUNG Electric applied for occupancy to build an automobile products plant, received permission in July 1974, and started construction in October 1975.