South Korea's Yura Corporation has bought ailing Serbian Zastava Elektro, which makes electrical installations for cars, for about EUR3m (US$4.1m), reports said.

Yura Corporation, whose customers include Hyundai and Kia, also pledged to invest around EUR8m and increase the number of employees to 1,000, AFP reported, citing local news agency Beta.

Beta said the deal was the first direct investment from a South Korean firm in Serbia.

Kragujevac-based Zastava Elektro made headlines here recently after workers striking over unpaid wages blocked a railroad linking Serbia to Bulgaria.

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