South Korean automotive supplier invests HUF 18 billion in Hungary

Minister of Foreign Affairs and Trade Péter Szijjártó announced three investments from South Korea on Monday.

The total value of three investments from South Korea is HUF 96 billion, of which the investment of Hanon Systems Hungary Kft. is HUF 18 billion; the company also received a state contribution of HUF 4.6 billion. The amount will expand the production capacity of air conditioning systems for electric cars, Péter Szijjártó said.

The South Korean company’s investment will also create 40 new jobs; it currently has more than 2,000 employees in Hungary, he added.

Szijjártó called South Korea an important investor and excellent technology development partner. The importance of the relations between the two countries is demonstrated by the fact that their bilateral trade turnover increased by another 25 percent in the first quarter of this year after a 28 percent expansion last year. South Korea is now one of the five largest investors in Hungary, the minister emphasized.

In addition to a successful vaccination campaign and an economic policy focused on job creation, the success of the relaunch also required Hungary to strengthen its relations with the Far East, which is increasingly defining the world economy, the minister said.

He noted that for 15 years, more than 80 percent of global investment has been financed from the West, but the share of Eastern countries has now reached 50 percent.

The CEO of Hanon Systems Hungary Kft. emphasized that Hungary has been providing favorable conditions for its operation for 30 years. Min Sung added that they feel committed to contribute to sustainability and hope their activities will serve the future of the Earth.

Founded in 1986, Hanon Systems is one of the world’s largest automotive air conditioning suppliers, operating 51 manufacturing plants and three innovation centers worldwide. Its products are used by Ford, Audi, Volvo and Renault, among others.

Their plant in Székesfehérvár employs almost 1,600 employees, and new factories were also built in Rétság, Nógrád County, in 2001 and in Pécs in 2019.

According to their report, the net sales of Hanon Hungary exceeded HUF 65 billion in 2019 and HUF 58 billion in 2020, mainly from foreign sales.

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