President Moon Jae-in says a low-wage carmaking venture between Gwangju City and Hyundai Motor will be a historic turning point in the country’s bid to become an inclusive society. 

Moon made the comment at a ceremony in the southwestern city on Thursday marking the agreement to launch the so-called Gwangju Job Project. 

He said the project will prove a grand compromise can create many jobs by keeping salaries at a certain level and predicted it will create around 12-thousand jobs.

Noting the project will enable the construction of the country’s first domestic auto factory in 23 years, the president said low-wage deals will also boost the competitiveness of local factories and companies. 

Under the Gwangju Job Project, the city government and the automaker will invest 59 billion won and 53 billion won, respectively, into the 700-billion won joint venture to build a factory with an annual production capacity of 100-thousand vehicles.