Many South Korean companies have secured investments in Karnataka in the gaming, automotive and FMCG sectors

Karnataka authorities have initiated talks with major Korean companies to strengthen the state’s economic position in the gaming, FMCG and automotive sectors.

The meeting was attended by MB Patil, Minister of Large and Medium Industries and Infrastructure Development, Government of Karnataka, and renowned Korean entrepreneurs such as YG-1, Krafton Inc., Go Pizza and HY Automotive Controls.

During the meeting, YG-1 announced a significant investment of USD 150 million in Karnataka. YG-1 is a global cutting tool manufacturer headquartered in South Korea. The company already operates a manufacturing facility at Tumakuru Machine Tool Park (TMTP) in Karnataka.

Reacting to the company’s investment decision, Patil wrote in a post on social media platform X (formerly Twitter), “YG-1 announces major investment and expansion plans in the state. YG-1, a leading global precision tool company, has announced a significant investment of $150 million in Karnataka. Building on its commitment to cultural exchange, YG-1 is pleased to announce the setting up of a state-of-the-art Korean language learning and training centre in our state. To further drive innovation and technological advancement, YG-1 has also proposed to set up a state-of-the-art R&D centre. The State Government is committed to supporting YG-1’s ambitious plans.”

As stated in the press release, the main topics of the meeting included future plans and export strategies.

The two sides discussed opening a Korean language learning center. They also discussed import duties from India to the U.S. versus Korea, the statement added.

Separately, the minister held talks with senior executives of Krafton Inc., where the company conveyed its plans to open a gaming hub in Karnataka and hire more engineers from India. Krafton Inc. also stressed its focus on cross-platform gaming development and global studio acquisitions. Since 2021, Krafton has invested $140 million in Indian startups across esports, multimedia entertainment, content creation, and audio platforms. The discussions covered AI integration in gaming, intellectual property rights, and esports development in India.

At a meet-and-greet focused on the FMCG ecosystem in Karnataka, Patil spoke to Lim Jae-won, CEO of Go Pizza. The company said it aims to achieve sales of over Rs 150 crore by Q1 next year in India, aiming to replicate the success of Domino’s, according to the release.

The release also added that the company intends to prioritise India and consider expanding in Bangalore by tripling the size of its factories.

HY Automotive Controls (HYAC) has discussed its expansion plans in India with the Karnataka Chief Minister, focusing on the company’s plan to incorporate in India and scouting for around 3 acres of land near Bangalore to set up a plant.