Busan City said on the 30th that it will sign a memorandum of understanding (MOU) with Korean Air Lines for an investment centered on building a new aerospace plant worth 200 billion won. This is the largest investment in the aerospace field that Busan City has attracted.
Mayor Park Heong-joon of Busan and Vice Chairman and CEO Woo Kee-Hong of Korean Air Lines are scheduled to attend the signing ceremony to be held at the Korean Air Lines Busan Tech Center that day and sign the memorandum of understanding.
Under this investment decision, Korean Air Lines will establish a new aerospace plant with a total floor area of 52,892㎡ (about 16,000 pyeong) on an idle site of 36,363㎡ (about 11,000 pyeong) within the Busan Tech Center.
The plant will be used as a multipurpose facility to expand Korean Air Lines' existing aerospace business and to respond to new businesses. It will handle work such as manufacturing future-type unmanned aerial vehicles, producing next-generation commercial aircraft parts, and modifying and upgrading military aircraft.
Korean Air Lines, the country's largest airline, is operating a tech center in Gangseo District, Busan, with a site area of 717,359㎡ (about 217,000 pyeong).
Busan City said this investment attraction will serve as a key foundation and hub for building a future aviation cluster. In addition, taking this investment attraction as an opportunity, the city plans to continue to expand the attraction of investments by corporations that will create a value chain for the upstream and downstream of the future aerospace industry.
Vice Chairman Woo Kee-Hong of Korean Air Lines said, "This investment is a strategic decision to lead the global unmanned aerial vehicle market and secure capabilities to manufacture next-generation aircraft," adding, "We will continue to contribute to revitalizing the regional economy and strengthening the competitiveness of Korea's aviation industry through cooperation with Busan City."
Mayor Park Heong-joon said, "We will spare no administrative and financial support so that Korean Air Lines can play a central role as the anchor corporation of Busan's future aviation cluster," adding, "We will nurture the aerospace industry ecosystem and create an environment favorable for corporations to invest, making western Busan a cradle of the future aerospace industry."