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Corporate investments spurring economic growth
Renault Korea has invested millions in its Busan plant, which can now manufacture electric vehicles.
Busan is emerging as a gobal business hub, with companies from the automotive, semiconductor, energy, railway and shipbuilding industries establishing factories and research centers here. These substantial investments are driving techological innovation and economic growth in the city,
DN Automotive, a leading company with assets exceeding 5 trillion won, plans to build a key production base in Busan. Ranked 74th in domestic business rankings, DN Automotive specializes in car parts, batteries, and machine tools. On Feb. 20, the company formalized an agreement with Busan City to invest 440 billion won to construct a large-scale factory for advanced vehicle battery production by 2028. The expansion includes hiring approximately 300 employees in various capacities.
Leeno Industrial Corporation, a prominent semiconductor firm, is investing 200 billion won to build a new factory in Eco Delta City in Gangseo-gu District. Scheduled to begin operations in mid-2026, the facility will cover 69,525 square meters and create around 200 jobs, boosting employment opportunities in western Busan.
Renault Korea recently upgraded its Busan plant, transitioning to a mixed production line in February. This enhancement enables the simultaneous manufacturing of internal combustion and electric vehicles. Following a March 2024 business agreement with the city, Renault Korea will transform the facility into a hub for future vehicle production, with a planned investment of 1.5 trillion won by 2027.
LS Electric, Korea's leading power and automation company, is investing 100.8 billion won to expand its Busan factory by year돴s end. The expansion will introduce advanced production lines for high-voltage electrical equipment, including vapor phase drying units, an assembly area, a laboratory and a welding section for high-voltage transformer manufacturing.
VCTech, a leader in railway vehicles and electric vehicle control systems, is reshoring its operations to Busan. In December, city officials signed an agreement with the company, facilitating a 26.8 billion won investment. VCTech will shut down its Shanghai operations and establish a new production base in Gijang-gun County by 2026, expected to generate at least 37 manufacturing jobs.
Hanwha Ocean, a major shipbuilding and offshore conglomerate, is investing 10 billion won to open the Busan Engineering Center in Jung-gu District by May 2025. The center will focus on designing offshore plants for deep-sea natural gas and oil extraction, as well as specialized vessels like warships and submarines. The 1,320-square-meter facility will initially employ 150 designers, with plans to hire an additional 350 by 2027. The move will bolster the local job market and support marine engineering graduates from Busan universities.
Busan's appeal to investors is driven by its commitment to regulatory reforms and corporate support programs. Since September 2024, the city has revamped its one-stop corporate support center to swiftly address regulatory hurdles and provide assistance to businesses looking to expand in the region.