Investment Flows into Busan's Power Semiconductor and Ulsan's Secondary Battery Specialized Complexes

Additional Investment of 2.1 Trillion Won After Selection as a Specialized Complex

Lee Chang-yang, Minister of Trade, Industry and Energy, is speaking at the Committee for Strengthening Competitiveness of Materials, Parts, and Equipment held at the Government Seoul Office on July 20. Photo by Hyunmin Kim kimhyun81@

Private investments are continuing in Busan and Ulsan, which were respectively selected as specialized complexes for power semiconductors and secondary batteries. Within less than a month since their designation as specialized complexes last month, additional investments worth trillions of won are being discussed. The government has also stepped up active support.

On the 16th, Lee Chang-yang, Minister of Trade, Industry and Energy, began on-site visits to explore development plans for each complex, starting with the Busan power semiconductor 소재·부품·장비 (materials, parts, and equipment) specialized complex and the Ulsan secondary battery national advanced strategic industry specialized complex. Initially, private investments of 800 billion won in Busan and 7.4 trillion won in Ulsan, totaling 8.2 trillion won, were planned for these industrial complexes, but after their designation as specialized complexes, an additional investment of 2.1 trillion won has been made.

Busan, designated last month as a power semiconductor specialized complex, has corporate investments planned worth 800 billion won, including SK Powertech (power semiconductor production), B2G (power semiconductor materials), and GMJECO (power semiconductor packaging). The Ministry of Trade, Industry and Energy explained that additional investments exceeding 500 billion won from power semiconductor companies are being discussed since the designation of the specialized complex. The ministry plans to support companies by launching a power semiconductor technology development project worth 138.5 billion won starting next year and establishing demonstration infrastructure worth 26.5 billion won.

The Busan specialized complex was designated over a total area of 630,000 pyeong near Gijang-gun in the Dongnam region industrial complex, aiming to build a next-generation power semiconductor ecosystem expected to grow rapidly in the future due to increasing demand for electric vehicles. SK Powertech expanded and relocated its production facilities to the Busan specialized complex in February to enter the electric vehicle compound power semiconductor market in earnest, upgrading all 4-inch based equipment to 6-inch. SK Powertech aims to achieve sales exceeding 500 billion won by 2026, as the compound power semiconductor market is rapidly growing.

B2G also plans to start construction of production facilities for compound power semiconductor materials and devices within the Busan specialized complex by the end of this year. Based on technical cooperation with the Japanese compound power semiconductor technology company OXIDE, B2G plans to build production facilities worth 200 billion won and begin mass production of compound power semiconductors from 2028.

Ulsan was designated last month as a national advanced strategic industry specialized complex in the secondary battery sector, along with Cheongju in Chungbuk, Pohang in Gyeongbuk, and Saemangeum in Jeonbuk. The Ulsan secondary battery industrial complex involves 173 companies including Samsung SDI, Hyundai Motor Company, and Korea Zinc, with private investments worth 8.1 trillion won planned by 2030. This includes 700 billion won in new investments confirmed after the designation as a specialized complex.

The Ministry of Trade, Industry and Energy stated, "Within less than a month after the designation of the specialized complex, 700 billion won in new investments have been confirmed, and an additional 900 billion won in investments are being discussed, showing strong interest from companies." If additional investments are confirmed, the total investment scale will increase by 1.6 trillion won from the initially announced 7.4 trillion won at the time of designation, reaching 9 trillion won.

Samsung SDI plans to build the country's first LFP battery production facility in the Ulsan industrial complex, in addition to investments in next-generation batteries. Korea Zinc, visited by Minister Lee Chang-yang on the day, plans to invest a total of 1.2 trillion won in the Ulsan specialized complex by 2027 for processing secondary battery minerals and materials, based on technology secured in the existing non-ferrous metals sector. New entrants into the battery sector such as Isu Specialty Chemical (a subsidiary of Isu Chemical) and startups like Inchems are also expected to actively participate in next-generation battery technology development.

The Ministry of Trade, Industry and Energy and Ulsan City plan to invest 34 billion won by 2025 to create a next-generation battery park, supporting the establishment of Ulsan's mother factory.

Minister Lee said on the day, "We have presented an industrial strategy map to foster 10 major advanced industries and key sectors such as semiconductors and secondary batteries, and established a geographic map for advanced industry development through the creation of 15 national industrial complexes and designation of 12 specialized complexes considering the industrial base of each region. Based on this, we will lead the ultra-gap in advanced industries through detailed policy support by discovering specific development measures through close cooperation between the government and local governments."

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