‘VC Tech’ Returns to Busan... Korea's Leading Railway and Mobility Control Technology Specialist Company

10:50 AM on the 18th, City Hall, Signing of MOU for Domestic Return Investment with VCTech

Return Investment by Leading Railway and Mobility Control Technology Company... Full Operation from 2026

On the 18th at 10:50 AM, Busan City will sign a memorandum of understanding (MOU) for domestic return investment worth 26.8 billion KRW with VC Tech, a leading company in railway vehicle and electric vehicle control technology, at the City Hall video conference room.

The signing ceremony will be attended by Mayor Park Hyung-jun, VC Tech CEO Lee In-seok, and Hyosung Electric Chairman Jung Jin-geun, among others.

Located in Gunpo, Gyeonggi Province, VC Tech was established in 2002 and began by supplying propulsion inverter controllers for Daegu Urban Railway Line 2. The company succeeded in the world’s first mass production of AC motors and inverters for golf carts, and is a technology-intensive SME possessing world-class advanced technologies in railway vehicle and mobility control technology.

VC Tech exports railway electronic components through Hyundai Rotem to domestic railway companies such as Busan Transportation Corporation and Seoul Metro, as well as to global markets including Canada, Australia, and Egypt.

Also, as a research and development-centered company with over 50% of its workforce dedicated to R&D, VC Tech leads future mobility technologies such as electric drive vehicle motors and drive system development based on 35 domestic and international patents.

VC Tech, a family company of Hyosung Electric that returned to Korea last year (2023), will also return to Busan and collaborate with Hyosung Electric to achieve technological convergence.

With this agreement, VC Tech will liquidate its production plant in Shanghai, China, and establish a production base for railway and mobility inverter controllers in the Southeast Radiation Medical Science Industrial Complex in Gijang-gun, where Hyosung Electric is located. This is expected to create at least 37 high-quality new jobs.

Both Hyosung Electric and VC Tech have chosen to return to Busan, and going forward, the fusion of Hyosung Electric’s motor technology and VC Tech’s control technology will strengthen global competitiveness and lead innovation in the eco-friendly mobility industry.

VC Tech plans to invest 26.8 billion KRW to establish a mass production system for railway and electric vehicle propulsion inverter controllers and blower motor controllers. Once fully operational from 2026, it will secure an annual production capacity of mobility parts worth 300 billion KRW.

The city expects that attracting VC Tech, a power semiconductor demand company, to the power semiconductor specialized complex will contribute to the clustering of related industries and the creation of a next-generation power semiconductor industry ecosystem. The city also plans to maximize synergy effects by successfully designating the currently promoted "Secondary Battery and Mobility Opportunity Development Special Zone."

To secure the domestic market for power semiconductors, which have a high dependence on overseas sources, the city designated the Southeast Radiation Medical Science Industrial Complex as a power semiconductor specialized complex in July last year and has applied for additional designation of the "Secondary Battery-Mobility Special Zone" to establish a "Southeast Value Chain" connecting raw material supply to finished vehicle delivery.

The Busan-type Opportunity Development Special Zone is expected to be a new opportunity for regional balanced development and an innovative driving force for Busan’s new leap forward.

Mayor Park Hyung-jun stated, “The trend in the future mobility industry is electrification, and the core of this electrification lies in securing controller technology. Therefore, VC Tech’s domestic return will be an important opportunity to strengthen the competitiveness of domestic manufacturing and revitalize the regional economy.” He added, “We will continue to provide full support so that companies can grow into global technology leaders in Busan. Building on this investment attraction, the city will continue strategic investment attraction focused on new and advanced industries next year, and will do its best to firmly establish Busan as a ‘global hub city’ through the creation of an industrial ecosystem in the mobility sector, which is a key manufacturing industry of Busan.”