Busan is good

Busan Aims to Become a Growth Hub in the Pharmaceutical Sector — Signs 50 Billion KRW Investment MOU with Local Company Daewoong Pharm

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Following its successful attraction of a large-scale 1.8 trillion KRW AI data center project, the Busan Metropolitan City (Mayor Park Heong-joon) has now secured a 50 billion KRW investment from local pharmaceutical company Daewoong Pharm to expand its ophthalmic drug manufacturing facilities.

As of May this year, Busan has already attracted nearly 3 trillion KRW in investment, bringing the city closer to its annual goal of securing over 8 trillion KRW in total investment.

Busan will sign an investment MOU with Daewoong Pharm Co., Ltd., a bio-pharmaceutical company, at 10:40 AM today (June 23) at the company’s headquarters in Saha-gu.

Mayor Park will personally visit Daewoong Pharm to sign the agreement, tour the production facilities, express appreciation for the company’s investment decision, and offer encouragement to employees.

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About Daewoong Pharm

Founded in Busan in 1976, Daewoong Pharm has steadily grown over the past 50 years as a local pharmaceutical company. With its advanced production technology and experience, it supplies a wide range of prescription drugs domestically and internationally, maintaining a strong upward trend in sales.

• ●Daewoong Pharm specializes in ophthalmic eye drops and holds a competitive edge in the global market.

• ●The company produces over 200 types of prescription drugs and is steadily expanding its contract manufacturing (CMO) business through new drug development and formulation technologies.

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Key Details of the Investment

Daewoong Pharm will invest 50 billion KRW by 2027 to build a state-of-the-art ophthalmic pharmaceutical production base on idle land at its Sahagu headquarters.

• ●The facility will cover a total floor area of 6,403㎡, doubling the existing eye drop production capacity and resolving supply bottlenecks.

• ●The project will create over 100 new jobs, mostly sourced from local universities like Dong-A University and Kyungsung University, boosting local employment and stability.

• ●Currently, 95% of its 250 employees are local residents.

• ●Daewoong Pharm is also actively engaged in student internships and university–industry cooperation, positioning itself as a model for local corporate-community partnership.

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Significance for Busan

Pharmaceutical and bio companies are mostly concentrated in the Seoul metropolitan area (e.g., Incheon, Osong), leaving Busan with a relatively weak industrial base. This MOU is expected to lay the groundwork for a robust local ecosystem of R&D and manufacturing in the bio-pharma industry.

Busan has also attracted other notable investments recently:

• ●Prestige Biopharma, a global biotech firm based in Singapore, opened its Innovative Drug Center (IDC) in Gangseo-gu in November last year.

• ●Binex, a Busan-based specialty pharmaceutical company, completed a new manufacturing plant in 2023.

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CEO Ji Yong-hoon of Daewoong Pharm stated:

“With this investment, we will establish Korea’s leading ophthalmic production facilities.
Daewoong Pharm will grow into a top-tier ophthalmic pharmaceutical company and a global leader in the industry.
We are committed to contributing to the balanced growth of the pharmaceutical sector and the economic development of Busan.”

Mayor Park Heong-joon added:

“While some say companies are leaving Busan for management reasons, this year alone we’ve secured major investments like Hanwha Ocean’s engineering center and DN Automotive’s battery plant.
I hope Daewoong Pharm will become a leading example of how companies can thrive locally without moving to the capital region.
The pharmaceutical and bio industries are strategic sectors for our city, and we will provide strong support to nurture Busan’s future bioindustry.”

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[Appendix] Event Overview

MOU Details

• ●Date & Time: June 23, 2025 (Mon), 10:40 AM

• ●Location: Daewoong Pharm Headquarters (Saha-gu)

• ●Participants:

• ○(City): Mayor, Director General of Digital Economy, Biohealth Division Chief, Industry–Academia Cooperation Division Chief

• ○(Company): CEO Ji Yong-hoon and executives

• ●Content:

• ○(City): Provide administrative and financial support for the plant expansion

• ○(Company): Faithful execution of the investment plan, joint growth with local industries, creation of quality jobs