Korean Air to Invest 200 Billion Won in New Factory in Western Busan
Busan City announced that it has signed a memorandum of understanding for a 200 billion won investment with Korean Air at the Korean Air Busan Tech Center in Gangseo-gu, Busan on the afternoon of the 30th. The signing ceremony was attended by Busan Mayor Park Hyung-jun and Korean Air CEO Woo Ki-hong.
Korean Air plans to construct a new factory with a floor area of 52,800 square meters (16,000 pyeong) on unused land within the Busan Tech Center. The new facility will be used for expanding aerospace business, including manufacturing future unmanned aerial vehicles, producing next-generation aircraft components, modifying and improving military aircraft, and accommodating new business ventures.
In particular, Korean Air will focus on securing capabilities for manufacturing next-generation UAVs targeting the expanding UAV market in areas such as logistics, leisure and tourism, disaster response, and agriculture.
The Busan Tech Center, covering an area of 217,000 pyeong, serves as Korean Air's research and development (R&D) and production hub for aircraft component design, development, production, UAV development and production, and military and civilian aircraft maintenance, repair, and overhaul (MRO) services. Korean Air has recently developed a number of AI-based next-generation UAVs and is striving to become a global leader in the UAV industry.
Korean Air CEO Woo Ki-hong stated, "This strategic decision by Korean Air aims to lead the global UAV market and secure capabilities for manufacturing next-generation aircraft." He added, "We will nurture the Busan Tech Center as a core hub for the future aerospace industry to contribute to revitalizing the regional economy and enhancing the competitiveness of Korea's aviation industry."
From Busan City's perspective, the construction of the new Korean Air factory is the largest achievement in attracting investment in the aerospace sector.
Busan City has been continuously proposing new investments in Busan to Korean Air since last year, and Korean Air responded with this memorandum of understanding to support the development of the regional aerospace industry, Busan's desire for investment from large companies, and the national balanced development policy.
Busan City plans to link this investment achievement with the planned Gadeokdo New Airport and establish it as the core foundation and focal point of the 'Busan Future Aerospace Cluster' being developed in the western Busan area. It is also expected to provide momentum for national R&D project planning and securing, including the development of a large mobility component assembly complex process system being pursued by Korean Air.
Mayor Park Hyung-jun stated, "I will spare no financial support to ensure that Korean Air plays a central role as the anchor company in the Busan Future Aerospace Cluster." He added, "Taking this investment attraction as an opportunity, we will continue to expand the attraction of investments from large companies to create a value chain for the future aerospace industry."