921 Billion Won Invested in Daegu Over 3 Years
Comprehensive Support for Project Costs and Financing
Daegu City has selected three companies as Powerful Star Companies, which will lead large-scale investments, revitalize the local economy, and drive industrial structure innovation toward future new industries. The selection ceremony was held on the 21st at the Sangyeok Office of Daegu City Hall.
The Powerful Star Company program is a new business nurturing initiative launched this year by Daegu City. Its goal is to discover companies planning to invest over 20 billion KRW in the Daegu region during the program period (2024-2026), and foster them into global enterprises representing the region, similar to L&F (a leading secondary battery company).
THN CEO Seunghoon Chae (left), Dentis CEO Gibong Sim (second from right), and Youngpoong Executive Director Hojun Cho (right) are holding the Powerful Star Company certificate and posing for a commemorative photo with Daegu Mayor Joonpyo Hong.
Daegu City, Daegu Technopark (the main agency), and Daegu Regional Industry Promotion Agency (participating agency) conducted an open recruitment process in early April, targeting outstanding local star companies and World Class selected companies. Five companies applied for the program.
The applicants underwent a rigorous evaluation process, including document review, on-site inspection, presentation assessment, and a selection committee. The final three companies were chosen based on a comprehensive assessment of investment suitability, growth potential, and regional impact.
The three companies selected as Powerful Star Companies this year are THN, Dentis, and Youngpoong. As of 2023, the average sales revenue of these companies is 201 billion KRW, with an average of 347 employees. Over the next three years, they plan to invest a total of 92.1 billion KRW in the region through factory construction and facility expansion.
THN, established in 1986, has secured future competitiveness by developing wire harnesses (often called the blood vessels of automobiles), vehicle electronic control modules, and advancing core technologies for eco-friendly and autonomous vehicles.
THN plans to invest 26.7 billion KRW in expanding production facilities, including new factories, high-voltage box lines, and wiring manufacturing processes. The company is also establishing local subsidiaries in the United States and Mexico to target the North American market. With increased R&D investment and strengthened open innovation, THN aims to become a global Top 5 company in the automotive electronic components sector by 2025.
Dentis, which began as a dental implant manufacturer in 2005, now produces a wide range of medical devices for hospitals and clinics across all medical fields, from dental to medical, based on a diversified business portfolio.
Dentis is investing 22 billion KRW to build a new factory and expand automated production processes in Yulamdong, Dong-gu, Daegu. By maximizing logistics efficiency through advanced logistics systems and strengthening productivity, Dentis aims to transform into a total solution provider that offers all products and services needed for dental clinics, from opening to treatment, rather than merely supplying dental medical devices.
Youngpoong contributes to the globalization of Korean cuisine by exporting its flagship tteokbokki brand 'Yopokki', which is synonymous with K-food, to over 100 countries worldwide, including Southeast Asia, Europe, and North America, riding the global Korean Wave.
Youngpoong plans to invest 43.4 billion KRW to consolidate its dispersed business sites, enhancing management efficiency and continuously developing new products in line with changing trends. The company is also pursuing R&D for establishing cutting-edge smart production facilities, such as AI vending machines and unmanned cooking robots, and plans to go public on KOSDAQ through an IPO in 2026.
Powerful Star Companies will receive a comprehensive all-round support package for three years, including customized funding for R&D project planning and business restructuring (100-150 million KRW per year), extra points when applying for industrial land, increased loan limits from Daegu Bank, ESG management consulting, and other special financial benefits.
Mayor Hong Joonpyo stated, "We will spare no effort in supporting Powerful Star Companies so that they can grow into leading companies driving Daegu's economy for the next 100 years," and added, "I hope they will grow into global enterprises that expand beyond the region to the world."
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