"Busan Marks Era of 8 Trillion Won Investment: The Return of the Industrial City as Companies and Capital Flock Back"

Busan Mobilizes Special Zones, Funds, and Startup Policies

Busan has embarked on a transformation into a new advanced industrial city based on corporate investment. Once labeled as a "city of industrial decline," Busan has rapidly evolved in recent years into a hub attracting companies, capital, and talent, thereby generating new engines for growth. It is widely recognized that Busan City's proactive policies to attract and support corporate investment have played a decisive role in this transformation.

According to data released by Busan City on March 20, the total amount of investment attracted to Busan last year reached approximately 8 trillion won. This marks an increase of about 28 times compared to 281.5 billion won in 2020. The figures also carry significance beyond simple numerical growth. As investments continue to be driven by large corporations, bio companies, and advanced manufacturing firms focused on future industries, the investment structure itself is becoming more sophisticated.

On February 7 last year, Busan Mayor Park Hyungjun and other Busan city officials toured the Renault Korea electric vehicle production facility.

Notably, DN Automotive (441.2 billion won), LS Electric (100.8 billion won), two subsidiaries of Hanwha Group (19.1 billion won), and Kcell (18.2 billion won) have decided to invest in new industries. Additionally, existing companies such as Ganglim Insu and Daewoo Pharm have proceeded with expansion investments totaling 130.3 billion won. Foreign investment has also transformed Busan’s industrial landscape, with over 300 million dollars attracted primarily in data centers, parts and materials, and bio sectors.

These achievements have been underpinned by Busan City's institutional reforms. The city revised its investment support ordinances to substantially expand knowledge service subsidies and significantly increase support ratios for large-scale investments. Furthermore, it strengthened customized investment strategies by operating corporate experiential investment attraction familiarization tours.

One particularly notable change is the "one-stop corporate support system." Busan City has established a support system based on public-private cooperation to rapidly process various permits and administrative procedures arising during the investment process. For large-scale investors, dedicated public officials have been assigned to resolve issues related to factory construction and infrastructure directly on site.

With these support measures in place, large corporations continue to invest in Busan. A prime example is Renault Korea. Renault Korea is positioning Busan as its production base for future vehicles and is investing approximately 1.5 trillion won by 2027. The Busan plant is expanding its annual production capacity to around 200,000 units, firmly establishing itself as a global export hub. In fact, cumulative production has surpassed 4 million units, with about 45% of output exported overseas.

Expansion Achievements of the Busan Startup Ecosystem from 2021 to 2025.

Significant changes are also evident in the shipbuilding and marine industries. Leading domestic shipbuilding companies such as Samsung Heavy Industries, Hanwha Power Systems, and Hanwha Ocean are establishing research and development centers in Busan one after another.

Investment in logistics and manufacturing sectors is also expanding. Lotte Shopping is building an automated logistics center in Busan using the UK-based Ocado system. BGF Retail and Coupang are also pursuing the construction of large-scale logistics centers, while Nongshim is establishing an export-only ramen production plant in Busan.

Another aspect of Busan’s transformation is seen in its special zone policies. The city is integrating Opportunity Development Zones, Urban Convergence Zones, and Education Advancement Zones to create an urban structure that combines industry, talent, and residential environments.

Last year, Busan became the first city in the country to be designated as a Distributed Energy Special Zone. In this special zone, electricity generated locally can be traded directly within the region. This reduces power loss and transmission costs and lowers electricity expenses for companies. Busan City considers this a core competitive edge in attracting advanced industries such as data centers and artificial intelligence firms, which require large amounts of power.

The Opportunity Development Zone also plays a key role in Busan’s future industrial strategy. Busan has been designated as an Opportunity Development Zone on three occasions. In Eco Delta City, approximately 5 trillion won in investments is planned, focusing on data centers, mobility, and the robotics industry.

Financial policies are also being promoted to support the transformation of the industrial structure. Last year, Busan City established the "Busan Future Industry Transformation Fund No.1," totaling 55.1 billion won. This fund supports existing manufacturing companies, such as shipbuilding equipment and automotive parts manufacturers, in transitioning to digital and eco-friendly industries.

The opening ceremony of the Asia Startup Expo 'FLYASIA2025' is taking place at BEXCO in Busan.

The startup ecosystem is also growing rapidly. Through the Future Growth Venture Fund and the Innovation Scale-Up Venture Fund, Busan City has created a total of 1.5 trillion won in startup funds, far surpassing the cumulative total of the past 20 years. In addition, the city has established the Busan Technology Startup Investment Institute to integrate startup support functions and strengthen investment-linked programs and tailored growth support. Busan is also expanding its global investment network through the international startup event "FLY ASIA."

Park Hyungjun, Mayor of Busan, stated, "Our goal is to establish a virtuous city structure where industrial investment, startups, and talent development create a positive cycle through various support policies," adding, "The core direction of our policies is to build a structure where companies invest, young people find jobs, and the city achieves sustainable growth."

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