‘Seoyon E-hwa is the biggest automotive parts company in South Korea,’ exec says

By Justin Sayers – Senior Staff Writer, Austin Business Journal

Oct 28, 2024

Updated Oct 29, 2024 12:17am CDT

A major Korean auto parts supplier with ties to some of the largest vehicle manufacturers in the world aims to be a catalyst for other Korean automotive suppliers to move to the Austin metro.

Seoyon E-hwa Co. Ltd. executives made the assertion on Oct. 24 as the company continues to build out its 200,000-plus-square-foot manufacturing site in Hutto about 30 miles northwest of downtown Austin. The facility, located in Building 7 of the Hutto Innovation Park at 1501 Innovation Drive, is on track to open in January.

Hyun Kwon Jo, Seoyon’s Texas president and managing director, said the facility is the first piece in what the company hopes will eventually be a major investment at the Hutto site. It plans to start with one manufacturing line and about 80 employees. But he said he has relocated to Texas to continue to drum up more customers for future manufacturing lines — and potentially open a research-and-design facility in the area.

He said Seoyon wants to be the magnet that attracts other automotive suppliers to the region, similar to how Samsung Electronics Co. Ltd. has been a magnet for companies in Korea’s semiconductor industry that want to locate close to Samsung’s huge factory under construction in Taylor, which is near Hutto.

“In my opinion, Seoyon E-hwa is the biggest automotive parts company in South Korea,” Jo said, adding that many companies in Korea don’t yet know where Hutto is, although they are familiar with Austin and Taylor. “If we succeed to sell down here, we can affect a good size of other South Korean companies.”

That would mark a massive economic win for the region as Seoyon E-hwa reported more than 3.574 billion Korean won in sales, or more than $2 billion U.S. dollars, across the globe in 2023, according to company numbers. Seoyon was founded more than 50 years ago and manufactures interior components for vehicles, such as door panels, bumpers, consults, seats, headliners and rear parcel shelves. It has more than 40 locations in more than 10 countries, including four in the United States located in Alabama and Georgia.

Seoyon cites its biggest clients as Hyundai Motor Co. and Kia Corp., both South Korean vehicle makers with facilities planned or online in Alabama and Georgia. Korean news outlets reported last year that the company signed a supplier deal with Tesla Inc., but those reports were quickly denied by the company at the time and those reports have since been changed. Seoyon executives denied those reports and declined to comment on whether it is a Tesla supplier to the Austin Business Journal.

Jo said the company was attracted to Austin because of its business-friendly reputation and workforce, and because of the growth of the vehicle manufacturing industry here. He said the company was on an expedited timeline to be closer to customers and started its search about a year ago. It picked Hutto about six months ago over Georgetown, Kyle and Buda, primarily because of workforce and the city’s support, he said.

As things stand, construction is ongoing at the site. Documents filed in April with the Texas Department of Licensing and Regulation noted work is underway on 212,832 square feet of warehouse space — about the size of two Walmart stores — as well as on a 12,678-square-foot office space and a 5,311-square-foot utility building.

After the first line opens, the company aims to fill the site with more customers, such as nearby vehicle manufacturers like Toyota Motor Corp. in San Antonio or General Motors Co. in Arlington, he said. That could also be done by tapping the wealth of engineering talent at the University of Texas for a research-and-design facility.

Still, the expansion has not been without a number of challenges, he said. The biggest has been getting things done, such as permitting, because the process is different from other states and locales it has worked in. He credited groups like the city of Hutto, Hutto Economic Development Corp. and the Williamson County Economic Development Partnership for helping work through issues.

“We have learned a lot from coming back and forth,” he said.

But there are other struggles, as well. For one, outside of Tesla, the immediate Austin area doesn’t have a wealth of vehicle manufacturing, so the company is hoping growth of the industry in nearby states and in Austin continues. He also said hiring has been a challenge due to “cultural differences” between Korea and the U.S.

Jo said the best advice he can provide to foreign companies is to get in touch with local governments ahead of time. In his company’s case, it was too late to ask for things like financial incentives to help offset the costs of opening a new domestic plant. But establishing relationships has made that a possibility down the line, he said.

“We had no time to ask for advice from the city …. so we just launched here before we asked,” Jo said. “Many Korean companies expect the incentives to invest.”

Williamson County Judge Bill Gravell, who is among those working specifically to attract South Korean companies, responded that the county is “grateful they’ve chosen Williamson County to set up their U.S. operations.”

“We’re excited about what the future holds with them,” he said. “We’re able to diversify our portfolio and great days are ahead.”

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