Busan-Renault Korea Sign Memorandum of Understanding to Establish Future Vehicle Production Base

Signing Ceremony at City Hall on the 18th at 11:20 AM
118 Billion KRW Investment · 200 New Jobs Created

On the 18th at 11:20 a.m., Busan City signed a Memorandum of Understanding (MOU) with Renault Korea Motors at the City Hall video conference room to establish an investment agreement for building a future car production base.

Busan City and Renault Korea Motors signed a memorandum of understanding for investment to establish a future car production base.

This MOU signing was arranged for mutual cooperation between Busan City and Renault Korea Motors to transition the existing internal combustion engine vehicle-centered production system to a future car-centered system such as hybrids, including the establishment of a production base. The signing ceremony was attended by Mayor Park Hyung-joon and Renault Korea Motors CEO St?phane Deblaise, who personally signed the MOU.

Renault Korea Motors plans to invest 118 billion KRW in building a production base and replacing equipment for future car production at the Busan plant from this year through 2028, and to hire 200 new employees.

The city will provide administrative and financial support to ensure that Renault Korea Motors’ investment procedures for future car production facilities proceed smoothly. Furthermore, starting with this MOU signing, Renault Korea Motors’ hybrid vehicle new car development and production project, the 'Aurora Project,' is expected to be fully launched.

The city expects that Renault Korea Motors’ investment will significantly contribute to transforming the Busan region’s automobile industry into a future car-centered industry. In particular, it anticipates positive effects on regional economic revitalization and enhancement of Busan’s automobile industry competitiveness by developing Busan into a competitive future car hub, fostering linked development of upstream and downstream industries, and attracting excellent talent.

The city plans to create synergy by linking the 'Secondary Battery and Mobility Opportunity Development Special Zone,' which is being designated targeting Gangseo-gu and Gijang-gun areas, with the establishment of Renault Korea Motors’ future car production base.

Additionally, the city will ensure the smooth progress of the 'Export-led Future Car Industry Innovation Growth Technology Support Infrastructure Project' and the 'Export-led Future Car Win-win Cooperation Core Parts R&D Support Project,' which were jointly agreed upon last May through industry-academia-government cooperation to create a future car ecosystem and are being promoted as national and city-funded projects.

St?phane Deblaise, CEO of Renault Korea Motors, said, “The competitive vehicle parts companies and excellent R&D infrastructure located in Busan are great advantages for attracting new car projects to Busan,” adding, “Along with this investment, Renault Korea Motors plans to invest 700 billion KRW in the Aurora Project.”

He specifically stated, “Negotiations are underway with Renault headquarters for the production of next-generation electric vehicle models at the Busan plant,” and explained, “If these negotiations succeed, a total investment of 1.5 trillion KRW will be made by 2027, including the 700 billion KRW for the Aurora Project.”

Mayor Park Hyung-joon said, “The automobile industry is one of the core industries that greatly influences the regional economy due to its strong linkage with upstream and downstream industries,” and added, “As Renault Korea Motors is the top manufacturing sales company in Busan, we will continue to cooperate and support boldly invested future car development so that Busan can firmly establish itself as a global future car hub city.”