Busan Investment Attraction Project No. 2 is a 'Jackpot'... DN Automotive to Build 440 Billion Won Advanced Battery Factory

Busan City Attracts Korea's Largest Automotive Vibration-Proof Parts and Battery Manufacturer
27,000 Pyeong Site in Dong Busan E-Park Industrial Complex, Gijang by 2028
Creation of About 300 New Jobs in R&D, Production, and Management Support

Busan City, which is going "all-in" on an 8 trillion won investment attraction project, has hit a massive jackpot worth around 400 billion won.

Busan City (Mayor Park Hyung-joon) announced on the 20th that it has succeeded in attracting a large-scale battery production plant worth 440 billion won. This follows the recent investment attraction of a major shipbuilding company’s Busan Engineering Center, and they have received a "love letter" from DN Automotive, a quasi-large company, expressing their intention to invest in Busan.

The DN Group has designated Busan as a future core production base and decided to build a large-scale battery production plant of DN Automotive, a key company in the group, in Busan, starting with DN Solutions’ investment in the "Global Unit Advanced Manufacturing Center" in February last year.

Ranked 74th in the business world, DN Group originated from Dong-A Tire Industry in 1971 and specializes in producing automobile parts, automotive batteries, and machine tools. In 2023, it surpassed total assets of 5 trillion won and is classified as a quasi-large enterprise business group.

On the 20th at 2 p.m., Busan City plans to sign a memorandum of understanding (MOU) with DN Automotive, a global manufacturer of automotive vibration-proof parts and batteries, at the city hall video conference room for the establishment of a new battery plant in Busan.

At the signing ceremony, Busan Mayor Park Hyung-joon and DN Automotive CEO Kim Sang-heon are expected to personally sign the MOU.

DN Automotive focuses on automotive vibration-proof parts and battery businesses. Its vibration-proof parts are traded with overseas automakers such as GM, BMW, and Stellantis Group, holding the largest market share domestically and ranking third globally in this sector.

DN Automotive plans to build a state-of-the-art production base worth 440 billion won in Busan by 2028 to specialize in manufacturing advanced automotive batteries. The facility will be constructed on approximately 27,000 pyeong in the Dong Busan E-Park Industrial Complex in Gijang-gun, with an investment of 441.2 billion won (43.6 billion won for land and 397.6 billion won for construction and equipment).

It is expected to create about 300 new jobs across various fields including research and development, production, and management support.

With this investment, the company plans to significantly increase battery production capacity by adding the new Busan plant to its existing Ulsan factory and to overwhelmingly expand its market share in the growing automotive battery market.

Busan City, based on its previous relationship from attracting DN Solutions, an affiliate of this company, has continuously monitored DN Automotive’s investment trends and proposed a customized site. Through several behind-the-scenes efforts including promoting changes to the industrial complex plan, they succeeded in securing the final decision.

The Dong Busan E-Park Industrial Complex, where DN Automotive will be located, was designated as a secondary battery-related special zone in December last year. Since the designation, this investment has been recorded as the first case of attracting an excellent company, signaling a "Busan rush" of more companies to come.

Kim Sang-heon, CEO of DN Automotive, said, "With this investment, we expect to take a step forward as a leading battery manufacturer representing South Korea," adding, "We will focus on hiring local talent and cooperating with local companies to contribute to the development of the regional economy."

Busan Mayor Park Hyung-joon said, "Following the attraction of the first affiliate of DN Group, I am confident that the beautiful partnership between DN Automotive, which has made the second investment, and Busan City will continue," and added, "I hope DN Automotive will serve as a driving force to lay the foundation for Busan to leap forward as a global hub city, and Busan City will gladly support the development of related industries."