Busan city said on the 4th that it signed an investment memorandum of understanding with local corporations Hwaseung Corporation to build a 37 billion won Proof Tech (R&D) Center.
Founded in 1978, Hwaseung Corporation is a corporations specializing in auto parts and materials based in Busan. It is regarded as one of Busan's leading local flagship corporations.
With this investment decision, Hwaseung Corporation plans to establish an R&D center by 2027 on 16,500 square meters (about 5,000 pyeong) of idle land within its Gijang-gun plant. Beyond research and development focused on existing auto parts, the center will be created as a strategic technology hub that performs an "incubating" role in demonstration, verification, and commercialization of automation technologies based on physical AI and Robotics and new elastomer materials.
According to the city, the center's construction is expected to lead to the transfer and new hiring of about 260 research and development personnel, among others.
The city plans to provide tailored support to ensure smooth execution of the investment. First, it will ease rigid regulations by expanding the permissible industries for occupancy in industrial complexes to remove barriers to corporations' investment. Through this, it plans to spur the inflow of advanced and new industries and investment into the Myeongnye Industrial Complex, which is centered on manufacturing.
It also plans to provide an environment in which corporations can stably carry out their projects by offering investment subsidies and listening to on-site difficulties.
Hyeon Ji-ho, CEO of Hwaseung Corporation, said, "The Busan Proof Tech Center is not a simple expansion of research facilities but a strategic turning point to prepare for the next 10 years," adding, "We will continue to create new industrial value beyond the limits of our existing business and contribute to Busan's economic growth and industrial development."
Busan Mayor Park Heong-joon said, "This is an achievement that shows Busan is establishing itself as a hub for advanced industry research and development," adding, "We will actively support everything from investment support to research and development, talent development, and industry-academia cooperation so that it can grow stably in the region."