Busan is good

The Busan Metropolitan City Selected for the Ministry of Trade, Industry and Energy’s “XR-Based Digital Twin System for Future Vehicle Platforms” Project

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The Busan Metropolitan City (Mayor Park Heong-joon) announced that it has been selected for the Ministry of Trade, Industry and Energy’s 2025 infrastructure project in the automotive sector: the “XR-Based Digital Twin System for Future Vehicle Platforms.”

○ The project is led by the Korea Institute of Machinery and Materials (KIMM), with the Korea Automotive Technology Institute and the Korea Auto Parts & Materials Industry Technology Institute participating as joint research institutions.

As a result of the selection, Busan will invest a total of KRW 20 billion (KRW 10 billion national funding, KRW 10 billion municipal funding) over four years from 2025 to 2028 to promote the following:

• ●Establishment of an XR and Digital Twin Technology Support Center

• ●Installation of testing and evaluation equipment for XR-based digital twin systems and technical support equipment for design and analysis

• ●Support for R&D, prototype production, and business development for local companies

○ The XR and Digital Twin Technology Support Center will use the installed equipment to assist local auto parts manufacturers in developing digital transformation technologies and promote projects that enhance collaboration between finished vehicle manufacturers and parts suppliers.

○ The establishment of digital transformation support infrastructure is expected to significantly contribute to the advancement and activation of Busan’s future vehicle industry ecosystem.

○ Notably, during the 51st Emergency Economic Response Meeting chaired by Mayor Park on April 29, the city announced its “Crisis Response and Future Strategy for Busan’s Automotive Industry.”

Mayor Park stated, “Our city is steadily advancing R&D and infrastructure projects to transition into the future vehicle industry. We will continue to do our utmost to establish a sustainable future vehicle industrial ecosystem.”

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Appendix 1: Project Overview (2025–2028)

• ●Project Title: XR-Based Digital Twin System for Future Vehicle Platforms

• ●Location: Busan Machinery Technology Center, 48, Mieumsandan 5-ro 41beon-gil, Gangseo-gu, Busan

• ●Key Components:

• ○Center Establishment: EV parts XR/Digital Twin Technology Support Center

• ○Equipment Installation:

• ■1 test and evaluation facility for EV platforms and associated parts

• ■4 design and analysis support systems for XR/Digital Twin-based parts development

• ○Business Support: Design and analysis consulting, testing and evaluation, prototype production, commercialization, export consulting, and collaborative network support

• ●Project Lead Institutions: Korea Institute of Machinery and Materials, Korea Automotive Technology Institute, Korea Auto Parts & Materials Industry Technology Institute

• ●Total Budget: KRW 20 billion (KRW 10 billion national, KRW 10 billion municipal)

Project Timeline:

• ●Nov 2023: Project included in Busan’s 2025 new project proposal

• ●Jun 2024: Project justification submitted to Ministry of Economy and Finance (via Mayor-Deputy PM meeting)

• ●Dec 2024: Final budget confirmation (KRW 2.5 billion allocated for 2025)

• ●Apr–May 2025: Final selection in the 2025 automotive sector project evaluation

Expected Outcomes:

• ●Establishing infrastructure to support digital transformation technologies for EV parts using XR and digital twin systems

• ●Advancing Busan’s future vehicle industry ecosystem

• ●Supporting Renault Korea’s new vehicle projects and the Eco Cluster Center through infrastructure utilization and collaborative partnerships

Future Plans:

• ●Dec 2025: Secure KRW 1.08 billion in supplementary municipal funding for first-year implementation

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Appendix 2: Concept Diagram Summary

• ●Target: Establish a virtual environment connected to EV platform testing and evaluation equipment that reflects real-time data, enabling performance prediction, structural design, and installation verification for EV-related components

• ○Related components: Battery pack cases, pumps, valves, compressors, suspension systems, etc. — component groups suited for digital transformation in the EV transition process

• ●Purpose: Provide performance prediction, analysis, and design verification services for EV parts, systems, and vehicles using XR and digital twin virtual models — strengthening technical competitiveness and reducing time and costs for prototype development