Busan, a Business-Friendly City, Shows Green Light for Investment Attraction

Global Tech Companies Sign Investment Agreement with Three Defense IT Firms

At 3:30 PM on the 30th, City Hall Hosts Global Tech and Defense IT Companies

Hyosung Electric, Zion Entech, and Eight One to Invest 79.9 Billion KRW, Expecting 230 J

On the 30th at 3:30 PM, Busan City will sign a memorandum of understanding (MOU) for investment with three advanced technology small and medium-sized enterprises (SMEs) ? Hyosung Electric, Zion Entech, and Eight One ? at the 7th floor video conference room of City Hall.

Busan City Hall.

The investment agreement signing ceremony will be attended by Mayor Park Hyung-jun, Hyosung Electric President Kim Wan-tae, Zion Entech CEO Choi Kwang-il, Eight One CEO Lee Jin-yeop, and company executives and employees.

▲Hyosung Electric

Hyosung Electric, founded in 1973, is a global technology company that has developed automotive small motors, gears, batteries, and other components for over 50 years. Its main product, the blower motor, holds the world’s second-largest market share, and 60% of its products are exported to more than 40 companies in 15 countries.

The blower motor is a product that blows air for fans, heaters, and air conditioners.

The company decided to reduce its operations in China and make new investments in Busan in response to future supply chain changes such as the automotive industry's shift toward eco-friendliness and electrification. It plans to invest 50 billion KRW in the Southeast Radiation Medical Science Industrial Complex to build facilities and hire about 150 new employees.

Using this investment as a stepping stone, the company aims to firmly establish itself as the world’s number one automotive blower motor company and transform into a provider of power for future mobility.

▲Zion Entech

Zion Entech, established in 2012, is a company specializing in automotive parts such as hub bearings. Despite the global economic downturn, it is a rapidly growing regional SME aiming to become a world-class automotive parts company through continuous reinvestment.

Hub bearings, also called wheel bearings, are parts that minimize friction on the wheel side when a vehicle is driven, supporting shocks and vehicle loads.

The company plans to invest 16.1 billion KRW near its headquarters in Gangseo-gu to build facilities and hire about 30 new employees. The new facility will mass-produce parts supplied to the global electric vehicle company Tesla.

In particular, by recently introducing heat treatment equipment, the company has established a one-stop process facility from materials to processing, accelerating the development of an intelligent factory (smart factory) to strengthen its competitiveness.

▲Eight One

Eight One is a KOSDAQ-listed company specializing in the development of virtual training systems and solutions in the intelligent (smart) defense sector. Based on the expansion of extended reality (XR) technology, it has chosen Busan as a new hub to resolve the shortage of specialized personnel in the Seoul metropolitan area while expanding its business fields.

The company will relocate its headquarters from Gwangmyeong, Gyeonggi-do, to Gangseo-gu, Busan, investing 13.8 billion KRW and hiring more than 50 new employees by 2026. It plans to start new business development such as creating an educational and tourism immersive extended virtual world (metaverse) platform.

Mayor Park Hyung-jun stated, “Busan is Korea’s number one and the world’s 19th intelligent (smart) city, continuously growing through innovation.” He added, “We will successfully lead projects such as hosting the 2030 World Expo, which will lay the foundation for Korea’s next hundred years, the construction of the new Gadeokdo Airport, the North Port redevelopment project, the creation of the Centum 2 district advanced industrial complex, and the development of Eco Delta City, thereby enhancing Busan’s status as an international central city.”

He continued, “I deeply appreciate the companies that have recognized these changes and decided to invest. We will make even greater efforts to create ‘Busan, a city great for business,’ attracting companies from all over the world.”

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