S. Korea to create industrial complexes for next-generation cars

SEOUL, June 7 (Yonhap) -- The South Korean government said Sunday that it plans to set up two industrial complexes in the country's southern region as part of efforts to establish an infrastructure for the manufacture of next-generation vehicles.

The complexes will be built in the cities of Daegu, 302km southeast of Seoul,
and Gwangju, 329km southwest of Seoul, the Ministry of Knowledge Economy said.
It added the complexes would be used to produce next-generation automobiles that
include intelligent cars and clean-burning diesel vehicles.
Factories operating in the complexes will enjoy state funded financial support
and deregulation in construction and expansion, the ministry said.
Work on the Daegu complex is slated to start in 2011 at the latest, the ministry
said, adding it is conducting a second feasibility study on the complex.
If completed, the complex could produce 1.6 million cars annually, it said.
The Gwangju complex will have an annual production capacity of 1 million vehicles
designed to run on electric power or clean diesel engines that will help reduce
emissions of nitrogen oxides and other greenhouse gasses.
The ministry said it has spent some 500 million won (US$402,000) on mapping out
an action plan for completion of the project.
"We need to institute policies to promote the next-generation car industry, as
we import all parts and key technologies related to electric and clean-diesel
cars," said an official at the ministry.
The official predicted that demand for gas-powered and diesel engine vehicles
would fall of in the future and that demand for eco-friendly cars would step in
to take their place.
ksnam@yna.co.kr