Korea Defense Industry to Invest 220 Billion Won in Building State-of-the-Art Defense Plant in Yeongju

MOU Signed with Gyeongbuk Province and Yeongju City
370,000 Pyeong Site, Completion by 2031

On December 15, Gyeongbuk Province and Yeongju City signed an investment memorandum of understanding (MOU) with Korea Defense Industry Co., Ltd. at the Yeongju City Hall auditorium. The signing ceremony was attended by more than 20 people, including Lee Cheolwoo, Governor of Gyeongbuk Province; Yoo Junggeun, Acting Mayor of Yeongju City; National Assemblyman Lim Jongdeuk; Park Seongman, Chairman of the Gyeongbuk Provincial Council; Kim Byunggi, Chairman of the Yeongju City Council; and Jung Jungmo, CEO of Korea Defense Industry.

This agreement marks the largest manufacturing investment in Yeongju's history, utilizing a site of approximately 1.22 million square meters (370,000 pyeong). It is expected to serve as a turning point for Yeongju to emerge as a hub of the national strategic defense industry.

Jung Jungmo, CEO of Korea Defense Industry (center), is taking a commemorative photo with Lee Cheolwoo, Governor of Gyeongbuk Province (left), and Yoo Junggeun, Acting Mayor of Yeongju City, after signing a memorandum of understanding.

Korea Defense Industry was established by former employees of Hanwha's defense division and is engaged in mass production of key weapon systems such as 230mm multiple launch guided and unguided rockets, fuzes, and warheads. The company also develops drones and engineering munitions, working closely with major domestic and international partners.

With the goal of becoming a leading company responsible for national security, Korea Defense Industry has its headquarters in Sejong and factories in Daejeon, Boeun, and Gumi. For 2025, the company is expected to achieve sales of 603.5 billion won, a 106.9% increase from the previous year's 291.7 billion won, solidifying its position as a rising force in the Korean defense industry.

Through this 220 billion won investment, the company plans to build a state-of-the-art defense industry plant in Munsu-myeon, Yeongju City, from 2025 to 2031, creating approximately 400 new jobs. The project is expected to increase the local resident population by more than 650, generate employment for over 2,000 construction workers, boost local tax revenue by 26.3 billion won, and have an economic impact of about 415.5 billion won, injecting vitality into the stagnant regional economy.

This investment is expected to serve as a key catalyst for Yeongju's transformation into an advanced defense industry city, in conjunction with ongoing projects such as the Drone Flight Test and Evaluation Center and the establishment of a national industrial complex for aviation maintenance and military personnel training.

In particular, the defense sector benefits greatly from the clustering effect of the entire industry cycle, from production and logistics to testing, evaluation, and research and development. The presence of Korea Defense Industry is expected to serve as a catalyst for revitalizing the industrial belt in northern Gyeongbuk, centered around Yeongju, Andong, and Yecheon.

This project will be carried out in cooperation with government agencies such as the Agency for Defense Development (ADD) and the Korea Weapon System Safety Association, based on safety reviews and assessments. The highest level of safety management will be applied, including compliance with relevant regulations, monitoring, and the establishment of safety measures, to address local residents' concerns.

Jung Jungmo, CEO of Korea Defense Industry, stated, "By establishing the new Yeongju plant, we will significantly expand our production capacity and build a world-class defense production base, contributing to the development of the national strategic industry."

Lee Cheolwoo, Governor of Gyeongbuk Province, said, "I deeply appreciate CEO Jung Jungmo and all the employees for deciding to invest in Yeongju despite the challenging economic conditions. Yeongju is growing into an advanced defense industry city that combines drones, aviation, and defense, and this investment will play a decisive role in expanding the manufacturing ecosystem in the northern region and attracting new residents. We will do our utmost to support the company so that it can operate without inconvenience."