Kumho Electric to Move Its LED Production Base to China

Kumho Electric, Inc., a global leader in lighting technology, is headquartered in Seoul, South Korea. However, it intends to move its operations to produce light-emitting diode (LED) lighting devices to China. This is the first occasion for a Korean LED manufacturer to relocate its production base to China. The company said on August 11 that it is currently building an LED mass-production facility in Shenzhen in Guangdong Province.
 
Kumho Electric will assemble finished goods in its Shenzhen plant with parts and components such as LED chips and packages imported from Lumi Micro, its domestic subsidiary. Earlier late last year, the company had moved the production line for fluorescent lamps out to Vietnam.
 
A company official said, "Based on our decision to relocate all our LED production to China, we will move the mass-production line in Osan by the end of September, followed by additional facility investment as we set fit." The company's decision was motivated by its bid to improve price competitiveness while increasing its presence in China. The recent decision by the Chinese government to offer a variety of incentives to finished LED product producers was also a factor.

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