German BMW is planning to build an R&D center in Korea.

BMW Group, comprising BMW, Mini, and RR, selling around 40,000 units per year in Korea, plans to build an R&D center in addition to a driving center for new car testing, paving a way to possible assembly facilities in Korea.

The BMW’s R&D center in Korea is the fifth global technical center following U.S., China, Japan, and Brazil. The workforce will be twenty in 2015, including those from the head office.

The center will function for developing the preferred models by Korean consumers in the beginning, but will be expanded to the areas of developing electronic or electrical parts and batteries, and collaborative projects with its head office.

A representative of BMW Korea revealed that “The workforce will be around twenty from this autumn till next year, but in line with expansion of R&D activities the staff will increase to 100.”

For the purpose, BMW Korea is planning to recruit experts as necessary from October this year.

BMW is currently procuring from some 20 Korean suppliers high-tech microscopic cameras, etc., and especially planning to cooperate with Samsung Group for electronic or electrical parts, and batteries.

On the completion of the driving center, BMW has signed an MOU with Samsung SDI for expansion of business collaboration.

According to BMW and Samsung, Vice Chairman Jae-Yong Lee of Samsung Group had scheduled to participate in the completion ceremony of the driving center, but Chairman Lee’s hospitalization due to health problem caused it repealed, hence the meeting of both companies’ CEOs being expected sooner or later.

Korean government, Ministry of Trade, Industry and Energy(MOTIE), has expressed a support for the establishment of BMW’s R&D center in Korea.

In particular, Investment Policy Bureau of MOTIE called in a representative of BMW and heard of BMW’s plan to set up the R&D center.

The Investment Policy officers reportedly promised full supports on the project, in connection with KOTRA’s assistance programs.

The principal reason of such an assistance by MOTIE for BMW seems to be employment increment. The creation of employment and production will be subject to such a favor even for importers.

BMW is emphasizing that the ultimate purpose of building a driving center and an R&D center in Korea will contribute to the Korean society.

BMW hopes to build up their image in Korea, defying criticism on the lucrative sales of luxury car imports and no return to the community.