Busan Lands W200 Billion Investment to Propel UAV and Aircraft Parts Manufacturing, Solidifying its Position as Aviation Hub
Korean Air, South Korea’s flagship airline, has announced a significant investment in Busan, establishing a new manufacturing facility at its existing Busan aerospace complex. This move positions the southern port city as a critical center for enhancing aerospace and drone production capabilities.
The airline signed a memorandum of understanding with the Busan Metropolitan Government, committing to invest 200 billion won ($132 million) in the new factory. The facility will be located within Korean Air’s Busan Tech Center, recognized as one of Asia’s largest complexes for aircraft maintenance and manufacturing.
Spanning approximately 52,900 square meters, the new production center will focus on developing next-generation uncrewed aerial vehicles (UAVs), manufacturing commercial aircraft components, and performing military aircraft modification and upgrades. The project is scheduled for completion in 2029.
Korean Air stated that this investment demonstrates its proactive strategy to capitalize on the rapidly expanding global drone market. Demand for drones is projected to extend beyond defense applications into areas such as logistics, disaster response, agriculture, and leisure.
“This strategic decision aims to lead the global UAV market and secure advanced aircraft manufacturing capabilities,” stated Woo Kee-hong, Vice Chair of Korean Air, during the signing ceremony.
“We envision transforming the Busan Tech Center into a cornerstone of the future aerospace industry, stimulating local economic growth and strengthening the competitiveness of South Korea’s aviation sector.”
Korean Air’s aerospace division reported a revenue of 780 billion won in the past year, representing a 31 percent year-over-year increase, driven by military aircraft upgrades and drone programs. The division aims to achieve a revenue target of 1 trillion won this year.
For Busan, this deal, representing the largest aerospace investment ever secured by the city, holds significant strategic importance. The city is actively developing an industrial cluster centered on aviation, connected to the planned Gadeokdo New Airport project. Officials intend to leverage this investment as a catalyst to attract further investments across the aerospace value chain.
“We will provide comprehensive administrative and financial support to ensure Korean Air serves as the anchor of Busan’s future aviation cluster,” declared Busan Mayor Park Heong-joon. “Our objective is to establish western Busan as the core of the future aerospace industry.”
