Busan City Provides 3.5 Billion KRW to NF Co., Ltd. ... Generates 27.2 Billion KRW in New Investments

Secured 3.5 Billion KRW Industrial Local Investment Promotion Subsidy, New Smart Factory Investment
NF Co., Ltd., a Small Giant Company in Gijang-gun with Original Technology for Oxygen Supply Systems
Expanding Overseas Markets, Growing into a Globa

Perspective view of the NF Smart Factory under construction at 875-1 Banryong-ri, Gijang-gun, Busan, within the Busan New Materials Industrial Complex.

[Asia Economy Yeongnam Reporting Headquarters, Reporter Kim Yong-woo] Busan City has launched its first support project of the new year for ㈜NF (CEO Lee Sang-gon), a company possessing innovative technology in oxygen supply systems.

Busan City recently secured 3.5 billion KRW in local investment promotion subsidies from the Ministry of Trade, Industry and Energy and announced on the 4th that it will support ㈜NF.

The local investment promotion subsidy is a system where the national and local governments provide financial support to companies investing in local areas to revitalize local investment and promote regional balanced development.

Since the national government’s support ratio is high and part of the construction facility costs are directly provided to companies in cash, considerable effort is required to pass the final review by the Ministry of Trade, Industry and Energy’s deliberation committee.

㈜NF, located in Gijang-gun, Busan, is a small but strong company with innovative technological capabilities in the field of oxygen supply systems. Established in 2002 with the slogan ‘Saving Lives,’ it aims to supply high-quality oxygen, the most important element in human life.

The company has developed various oxygen supply systems for medical, industrial, and home use, with a product lineup of about 20 types, and recently has been expanding its business into the healthcare sector.

Since June 2020, NF has been investing 27.2 billion KRW to build its second factory with a total floor area of 7,329.46㎡ in the New Materials Industrial Complex in Gijang-gun, Busan.

The first phase of the manufacturing facility is scheduled to start operation in January, and all facilities are expected to be completed by July 2022, with plans to hire 85 new employees. The facility size is more than five times larger than the existing business site’s total floor area (1,437.15㎡). By introducing smart factory technology into key production processes, NF plans to dramatically increase productivity, reduce manufacturing costs, and significantly enhance the market competitiveness of its products.

NF’s flagship product, the medical automatic oxygen supply system, was developed to replace rechargeable high-pressure oxygen cylinders used in hospitals. It is the first centralized oxygen supply system in Korea capable of 24/7 continuous operation and supplying high-purity oxygen. It requires no separate installation work and connects to existing oxygen pipelines. It offers superior economy, convenience, safety, and scalability compared to high-pressure oxygen cylinders.

This product had mainly been sold to long-term care hospitals under the comprehensive payment system because it was not reflected in the Ministry of Health and Welfare’s medical insurance fees. However, in February 2019, NF’s medical oxygen supply system passed the regulatory sandbox of the Ministry of Trade, Industry and Energy under the Industrial Convergence Promotion Act, confirming its inclusion in medical insurance fees for the first time in Korea. Furthermore, NF plans to introduce a system enhanced with Internet of Things (IoT) technology to strengthen oxygen supply management functions.

As NF’s medical sales market expands significantly to about 4,000 locations including university hospitals, long-term care hospitals, and general hospitals, sales are expected to increase substantially from this year.

The healthcare market for home and workplace use also has high growth potential and is considered a high value-added industry. The company has installed oxygen supply systems in corporations and schools and plans to expand sales to various fields such as homes and offices by strengthening its sales capabilities.

Export business is also actively progressing. NF has already signed exclusive distribution contracts worth 28 million USD with 12 countries including India, the Philippines, and Vietnam. It plans to expand export channels to the Americas and European markets as well. Recognized for its innovative technology and future corporate value, NF has attracted continuous investments from large corporations and Japanese listed companies, and is expected to grow into a global medical healthcare specialist company.

Busan City plans to expand investment benefits so that companies actively investing in new industries through business restructuring can successfully enter new industries.

Byun Sung-wan, Acting Mayor of Busan, said, “In 2020, we made every effort to save local companies facing management crises due to COVID-19 and to protect jobs,” adding, “This year, we will strengthen our role as a catalyst for private investment to attract new corporate investments and actively work to revitalize the local economy.”

This content was produced with the assistance of AI translation services.