Invest KOREA

The Gyeongnam National Aerospace Industrial Complex is a national industrial complex being established in Gyeongnam Province where 68.6% (USD 3.5 billion)* of Korea's total aerospace industry output is generated. Construction began in April 2019 and the lots are currently for sale, with construction scheduled for completion in October 2024. Spanning across 1,596,710㎡, the Complex is divided into two zones: Jinju (793,369㎡) and Sacheon (803,341㎡).
The Complex, with a focus on the aerospace industry will be home to companies specializing in new metal and mechanical processes and new bio and chemical processes.

Gyeongnam is home to two major aerospace companies, Hanwha Aerospace and Korea Aerospace Industries (KAI) that produce aircraft engines, military aircraft, high-tech aviation parts such as auxiliary systems, nano-fusion materials, intelligent production machinery, mechanical materials and parts, shipbuilding and offshore plants, and automotive parts. Given this fact, the Bank of Korea report noted that most of the companies operating in the region are benefiting from the synergistic effects produced from their close link with the aerospace industry, which emerged as Gyeongnam's flagship industry.

In addition, the National Assembly passed the 'Special Act on the Establishment and Operation of the Korea Aerospace Administration' in January, and the agency will be installed in Sacheon as early as May. Operating under the Ministry of Science and ICT, KASA is the central administrative agency that will oversee the nation’s aerospace policy research and development and the promotion of the aerospace industry. KASA’s establishment will help the Complex attract various businesses and research centers in the aerospace industry.

Based on these strengths, Gyeongnam Province is building infrastructure to specialize in and boost the aerospace industry through the establishment of the Specialized Aerospace Industrial Complex, the Aviation MRO Complex, the UAV Industry Cluster, and the National Innovation Cluster, and is also focusing on the next stage by forming the Multi-purpose Aerospace City Construction Preparation Team.

Initially, the sales of lots were slow due to the current business climate impeding investment and the high sales prices compared to those of nearby general industrial complexes. However, the Complex is expected to attract more tenants, considering that Gyeongnam Province has announced the designation of five areas including aerospace, nuclear power, and hydrogen as high-tech industries from this year and the investment of some KRW1.7 trillion won in 45 related projects. The final decision to establish KASA in the region will also help boost sales