Busan Metropolitan City (Mayor Park Heong-joon) announced that it will sign a KRW 200 billion investment memorandum of understanding with Korean Air Co., Ltd. (Vice Chairman and CEO Woo Kee-hong) today (30th) at 3:10 PM at the Korean Air Busan Tech Center in Gangseo-gu.

At the signing ceremony, Mayor Park Heong-joon and Vice Chairman and CEO Woo Kee-hong of Korean Air will attend and sign the agreement, with senior officials from the city’s relevant departments and Korean Air executives also present, adding significance to the event.

Korean Air, the largest airline and a major corporation in Korea, operates the Busan Tech Center in Gangseo-gu, Busan, with a site area of 217,000 pyeong, and is engaged in businesses such as the design, development, and production of civil aircraft parts (structures), unmanned aerial vehicle development and production, and maintenance, repair, and overhaul (MRO) for military and civil aircraft.

The company began aircraft production in 1977 as the first in Korea, and recently demonstrated its advanced technological capabilities, including next-generation AI-based unmanned aerial vehicles, at “DSK 2026,” establishing itself as a leading global unmanned aerial vehicle company.

With this investment decision, Korean Air will construct a new aerospace manufacturing facility with a total floor area of 16,000 pyeong on an idle site of 11,000 pyeong within the Busan Tech Center.

The new facility will be utilized as a multipurpose site to expand Korean Air’s existing aerospace business, including manufacturing next-generation unmanned aerial vehicles, producing next-generation civil aircraft parts, and modifying and upgrading military aircraft, while also responding to new business opportunities.

This investment attraction is the result of continuous discussions between the city and Korean Air since last year and represents the largest investment ever secured in the aerospace sector.

Korean Air responded to the city’s proposal in alignment with its strong commitment to fostering the regional aerospace industry, attracting large corporate investment, and supporting national balanced development policies.

As the unmanned aerial vehicle market is expected to see sustained growth—driven by the defense sector and expanding into various industries such as artificial intelligence, logistics, leisure, tourism, disaster response, and agriculture—this investment is evaluated as a meaningful achievement in attracting investment in future promising industries.

The city is working to expand the industrial structure of West Busan toward the aerospace industry by establishing the “Busan Future Aviation Cluster” in the western Busan region in connection with Gadeokdo New Airport, and this investment is expected to serve as a key foundation and focal point for building the cluster.

Large-scale investment by an anchor company will drive the development of industrial complexes, attract related companies, and promote industrial agglomeration necessary for cluster formation, while strengthening cooperation among industry, academia, research institutes, and government. It is also expected to accelerate major national research and development (R&D) projects planned or being pursued with Korean Air, such as the development of a “large mobility parts assembly integrated process system.”

In addition, the city plans to use this investment as a catalyst to continuously expand the attraction of companies that will create a value chain in the upstream and downstream sectors of the future aerospace industry.

Woo Kee-hong, Vice Chairman and CEO of Korean Air, stated, “This large-scale investment is a strategic decision for Korean Air to lead the global unmanned aerial vehicle market and secure capabilities for next-generation aircraft manufacturing,” adding, “Through close cooperation with Busan Metropolitan City, we will foster the Busan Tech Center as a key base for the future aerospace industry, thereby contributing to regional economic revitalization and strengthening the competitiveness of Korea’s aviation industry.”

Mayor Park Heong-joon stated, “I sincerely thank Korean Air for its investment decision. Busan Metropolitan City will spare no administrative and financial support so that Korean Air can play a central role as an anchor company in the Busan Future Aviation Cluster,” adding, “As this investment represents an important momentum for West Busan to advance as a hub of the aerospace industry, we will continue to work with Korean Air to develop the aerospace industry ecosystem and create a business-friendly investment environment, thereby fostering West Busan into a cradle of the future aerospace industry.”