According to South Korean media reports, Busan has suspended investment approval for GTS joint ventures. The report further said that, more accurately, the memorandum of understanding between Busan, Jishan Group and Chinese enterprises was extended.
GTS is a 50%-50% joint venture cold rolling plant of stainless steel between Jishan Group of Korea and China Steel Company.
Since the investment plan was disclosed by the media, the local stainless steel enterprises in Korea have paid great attention to the project. During the period, opposition to the construction of the project continued, and even triggered protests, in order to request the government to stop the approval of the project.
Local fears that the construction of the project will increase the pressure of domestic oversupply and competition with other cold rolling enterprises have led to an increase in the unemployment rate, which has a negative impact on the national economy.
Jishan Group of Korea, one of the joint venture companies, has refuted the relevant reports and concerns of the industry before, and has made a superficial stand on the construction of the project, pointing out that the construction of the project is for the survival of the enterprise, and is an investment in the long-term development of Korean stainless steel.
However, the determination of Chinese enterprises to lay out overseas is unchanged. Overseas investment projects in other countries are not only in Busan. In addition to existing overseas construction projects, previous media reports reported that projects in Malaysia, Europe, and other places are also promoting earlier work.