Busan City Ignites 'Busan-type Jobs' in Government Public Contest Project

Application for 'Korens EM Busan-type Job' Model in Win-Win Regional Job Contest

Korens EM Co., Ltd. and Over 20 Partner Companies Participate ... 760 Billion KRW Investment by 2031

Full Effort to Win 382.6 Billion KRW for Future Car Industr

Aerial view of the Busan-type job industrial complex.

[Asia Economy Yeongnam Reporting Headquarters, Reporter Kim Yong-woo] Busan City has applied for the 'Busan-type Job' model in the government-led win-win regional job creation contest project.

The 'Busan-type Job' is a project where Korens EM Co., Ltd. (E-Mobility) and about 20 partner companies will establish a future car parts complex and produce approximately 5 million electric vehicle drive units by 2031.

This project plans to invest 760 billion KRW on a 264,462.81㎡ site in the Gangseo-gu International Industrial Logistics City adjacent to Busan New Port, creating 4,300 jobs. The goal is to build a global TOP3 future car parts export base.

The government's 'win-win regional job creation project' supports job creation through win-win agreements among local labor, management, and government, with administrative and financial packages provided by the government and local governments. The Gwangju-type, Miryang-type, and Gangwon-type jobs have already been selected as part of the government's 100 national agenda tasks.

The Busan-type Job is a model where primary and subcontractor companies collaborate to produce electric vehicle drive units and jointly develop technology for mutual growth. It aims for a labor-management and primary-subcontractor technology co-prosperity model.

The application includes the core business elements of the Busan-type Job, agreement implementation plans, job creation plans, business feasibility, and related national subsidy projects.

The final project selection is expected to be decided in January after on-site inspections by the public-private joint support group and the final resolution by the Ministry of Trade, Industry and Energy’s Win-Win Regional Job Creation Deliberation Committee.

Since April last year, the city has prepared the application by forming a dedicated Busan-type Job task force (TF) led by the Deputy Mayor for Economic Affairs. Support from both ruling and opposition lawmakers in the region, including National Assembly members Lee Ju-hwan, Choi In-ho, and Kim Do-eup, helped secure most of the national subsidy budget in the first year, 2021.

The project budget amounts to 382.6 billion KRW (118.3 billion KRW in national funds), covering infrastructure construction for the future car industry ecosystem such as the Electric Vehicle Parts Technology Hub Center, subsidies for investing companies, and public rental housing for workers.

Korens EM Co., Ltd. has been jointly developing electric vehicle drive unit technology with a German global automaker and possesses mass production technology.

The production and research facility for electric vehicle drive units broke ground in March last year and is scheduled for completion by the end of March this year, with prototype production set to begin in April. The electric vehicle drive unit is a component that functions as the engine, transmission, and ECU (Electronic Control Unit) of a car and, along with the battery, is a core part of future vehicles.

Korens EM holds mass production technology for WRSM motors (Wound Rotor Synchronous Motor) that do not rely on permanent magnets (rare earth elements), which is expected to contribute to strengthening national technological competitiveness through localization.

Currently, the southeastern region holds the largest share of the domestic automotive industry nationwide, but its industrial structure is concentrated on internal combustion engine vehicles, lacking the capacity to respond to future vehicles.

Busan City plans to support the participation of southeastern automotive parts companies in the Busan-type Job and create a related parts ecosystem, aiming to preoccupy the future electric vehicle value chain through win-win cooperation with the southeastern region and enhance competitiveness in the future car industry.

Byun Sung-wan, Acting Mayor of Busan, said, “The Busan-type Job is now on track. Busan has a rich automotive industry base in the southeastern region and has established the best Tri-Port (air, sea, and rail), making it highly likely to grow into an export base for future car parts. We will devote all efforts to being selected in this government contest project, which will be the foundation for growth.”

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