Japan's AGC to Withdraw from S. Korea: Report

Economy

Seoul, Sept. 11 (Jiji Press)--Major Japanese glass maker AGC Inc. <5201> will close its South Korean plant by January 2020 to pull out of the country, South Korea's Maeil Business Newspaper reported Wednesday.

The decision reflects sluggish operations related to liquid crystal display panels and the recent deterioration of Japan-South Korea ties, as well as labor issues, according to the paper.

The South Korean unit of AGC, formerly called Asahi Glass Co., informed local authorities of its plan to close the plant and other buildings located in the city of Gumi, North Gyeongsang Province.

Having established the plant in a national industrial complex in the city in 2006, AGC once saw its sales in South Korea grow. But the company halted operations at the plant in 2015 due to a fall in demand for LCD panels, according to the paper.

In 2012, a South Korean body designated AGC as one of "war-criminal companies" that requisitioned people from the Korean Peninsula to work for them during Japan's colonization of the peninsula from 1910 to 1945.

[Copyright The Jiji Press, Ltd.]

Jiji Press