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Busan Metropolitan City Secures Its First Investment of 2026 in Research and Development: Signs an Investment MOU with Hwaseung Corporation

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it will sign an investment memorandum of understanding (MOU) today (the 4th) at 10:00 a.m. with Hwaseung Corporation, a renowned local company, for the construction of the “Busan Demonstration Tech Center (R&D Center),” a KRW 37 billion investment project, at the company’s headquarters in Yeonje-gu.

After signing the MOU, Mayor Park Heong-joon will tour the product promotion hall and business facilities, express gratitude to the company for choosing to invest in Busan, and encourage employees.

Founded in Busan in 1978, Hwaseung Corporation is a leading local company that has grown over the past 50 years into a world-class enterprise specializing in automotive parts and materials, with Busan as its base.

With unrivaled elastomer material technology, the company has built a global network and, backed by stable performance with annual sales of approximately KRW 1.7 trillion, is now preparing for a second leap forward by expanding its business into eco-friendly non-automotive sectors.

Through this investment decision, Hwaseung Corporation will invest KRW 37 billion by 2027 to establish the “Busan Demonstration Tech Center (R&D Center)” on an idle site of approximately 16,500 square meters within its plant in Gijang-gun.

The center will go beyond existing R&D focused on automotive parts and will be developed as a strategic technology hub serving as an “incubator” for demonstrating, verifying, and commercializing physical AI and robotics-based automation technologies, as well as new elastomer materials.

In addition, the relocation of R&D personnel and the creation of new jobs are expected to total around 260 positions, and the project is anticipated to become a model case of a renowned local company contributing to the settlement of young people in the region and to revitalizing the local economy.

To ensure smooth implementation of the company’s investment, Busan Metropolitan City will provide tailored support by mobilizing all relevant departments.

First, the city plans to proactively remove obstacles to corporate investment by improving rigid regulations through expanding the range of business types permitted to move into industrial complexes. Through this, it will promote active investment and the inflow of advanced and new industries into Myeongnye Industrial Complex, which is currently centered on manufacturing.

The city will also provide investment subsidies and, even after attracting the investment, will offer close, on-site support to promptly resolve any operational difficulties, thereby creating an environment in which the company can carry out its project in a stable manner.

Meanwhile, as major conglomerates’ R&D centers are concentrated in the Seoul metropolitan area and the Chungcheong region, the attraction of Hwaseung Corporation’s Demonstration Tech Center to Busan—following the recent attraction of a large R&D center in the shipbuilding industry—is being evaluated as a meaningful achievement in terms of balanced regional development.

In particular, by expanding the region’s technology base so that highly skilled young talent can remain in the area, the project is expected to contribute to reorganizing Busan’s industrial structure around advanced research.

Building on this momentum, Busan Metropolitan City plans to further strengthen industry-academia linkages and continue expanding the attraction of knowledge-service companies by establishing a future-oriented business environment based on outstanding specialized talent produced annually by 22 local universities and a pleasant living environment.

Hyun Ji-ho, CEO of Hwaseung Corporation, said, “The Busan Demonstration Tech Center is not merely an expansion of research facilities, but a strategic turning point to prepare Hwaseung for the next 10 years in physical AI, robotics, and new materials,” adding, “Through technology demonstration and new business incubation, we will continue creating new industrial value beyond the limitations of our existing business and contribute to economic growth and industrial development in the Busan region.”

Mayor Park Heong-joon stated, “Hwaseung Corporation’s investment in the Demonstration Tech Center is another achievement showing that Busan is establishing itself as a hub for advanced industrial R&D,” and added, “I sincerely thank Hwaseung Corporation for making a large-scale investment decision in Busan rather than relocating to the Seoul metropolitan area. Busan Metropolitan City will actively support Hwaseung Corporation—continuing its challenge in future new industries such as eco-friendly materials here in Busan—across the board, from investment support to R&D, workforce development, and industry-academia cooperation, so that the company can grow steadily in the region.”