Hanwha Ocean to add Busan engineering center with at least 13.6 billion won investment
In short
Hanwha Ocean and the Busan city government signed a memorandum of understanding on October 21 for an additional Busan Engineering Center in Busanjin District. The company will invest at least 13.6 billion won and hire design and R&D staff for merchant ship and offshore plant work through 2028. Hanwha Ocean says its Geoje site keeps its core functions, while Geoje city has objected to design staff moving to Busan.
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Hanwha Ocean and the Busan city government signed a memorandum of understanding on October 21 for an additional Busan Engineering Center, the city said. Mayor Jeon Jae-su (전재수) and Hanwha Ocean president Jeong In-seop (정인섭) signed the document in the video conference room at City Hall. Under it, the company will invest at least 13.6 billion won in a center of 9,110 square metres, about 2,700 pyeong, in Bujeon-dong, Busanjin District, and hire specialist design and R&D staff for merchant ships and offshore plants through 2028. [ 1 , 3 , 4 , 7 ]
The investment follows an engineering center Hanwha Ocean set up in Busan's Jung District last year. Newsis, Kukmin Ilbo and Seoul Economic Daily reported that the company confirmed the availability of skilled technical staff in Busan while running that center and decided to expand design and R&D work in the city. Kukmin Ilbo described the new center's area as leased. [ 1 , 3 , 4 , 7 ]
The city expects the center to bring advanced R&D staff and core corporate functions that had been concentrated in the capital region to Busan, according to Newsis and Yonhap. It plans to widen investment attraction to related knowledge services and new industries. Jeon said the investment would help build a virtuous cycle in which young local people and talent work and grow in Busan. [ 3 , 4 , 7 ]
Hanwha Ocean also described the agreement in terms of its Geoje site. It said the Busanjin District hub is meant to secure design staff from the southeast region and will start operating in December, taking on part of the design work for merchant ships and EPU (Energy Plant Unit) projects. The company said the hub does not move or reduce Geoje functions; ship construction and other core functions stay at the Geoje site, and staff secured in Busan will be tied to Geoje projects. [ 2 , 5 , 8 ]
To back that position, the company cited Geoje hiring figures. As of September this year it had hired 161 general staff at Geoje and plans about 400 more by 2029. It said annual production hiring would rise to about 100, from 57 last year. It also said headcount rose from about 8,600 in May 2023 to about 11,000, with about 1,100 of the new staff joining the Geoje site. [ 2 , 5 , 8 ]
CBS NoCut News reported that Geoje city has objected, calling the movement of design staff to Busan a threat to the local economy and demanding a full review. It said Geoje Mayor Byun Kwang-yong (변광용) held a news conference on the 2nd of last month warning that Geoje could become a mere production base, and that the Geoje city council adopted a resolution demanding a halt. The outlet added that Hanwha Ocean cited an agreement signed in April with Geoje city, Geoje University and Geoje Technical High School, under which it would hire 20 local people a year from next year. [ 8 ]
Why it matters
Busan city expects the center to draw advanced R&D staff and core corporate functions that had been concentrated in the capital region. Geoje city, according to CBS NoCut News, fears the shift of design staff will hurt its economy, so the plan is contested locally.
Key facts
- Busan Mayor Jeon Jae-su and Hanwha Ocean president Jeong In-seop signed an MOU on October 21 at Busan City Hall for an additional Busan Engineering Center. [ 1 , 3 , 4 , 7 ]
- Hanwha Ocean will invest at least 13.6 billion won (136 eok won) in a center of 9,110 square metres, about 2,700 pyeong, in Bujeon-dong, Busanjin District. [ 1 , 3 , 4 , 7 ]
- The company plans to hire specialist design and R&D staff for merchant ships and offshore plants through 2028. [ 1 , 3 , 4 , 6 , 7 ]
- The investment builds on the engineering center Hanwha Ocean set up in Busan's Jung District last year. [ 1 , 3 , 4 , 7 ]
- Hanwha Ocean said the new design hub will start operating in December and handle part of the design work for merchant ships and EPU (Energy Plant Unit) projects. [ 2 , 5 , 8 ]
- The company said the hub does not move or reduce Geoje functions and that ship construction and other core functions stay at the Geoje site. [ 2 , 5 , 8 ]
Confirmed by several sources
- Busan city and Hanwha Ocean signed an MOU on October 21 at Busan City Hall for an additional Busan Engineering Center; Mayor Jeon Jae-su and Hanwha Ocean president Jeong In-seop took part. [ 1 , 2 , 3 , 4 , 5 , 7 ]
- Hanwha Ocean will invest at least 13.6 billion won in the new center in Bujeon-dong, Busanjin District. [ 1 , 3 , 4 , 6 , 7 ]
- Hanwha Ocean plans to hire design and R&D specialists for merchant ships and offshore plants through 2028. [ 1 , 3 , 4 , 6 , 7 ]
- Hanwha Ocean set up an engineering center in Busan's Jung District last year, and the new investment follows it. [ 1 , 3 , 4 , 7 ]
- Hanwha Ocean said the Busan hub is not a transfer of Geoje functions and that Geoje remains responsible for ship construction and other core functions. [ 2 , 5 , 8 ]
Still unclear
- How many people will be hired in Busan. The documents give the hiring period (through 2028) but no headcount for the Busan center.
- Whether Geoje's concerns about an outflow of design staff are justified. Only CBS NoCut News reports that Geoje city and its council demanded a full review; Hanwha Ocean says no Geoje function is being moved or reduced.
- How the December design hub relates to the 9,110 square metre center. Some outlets describe a new engineering center of 9,110 square metres, others an office-based hub in Busanjin District opening in December; no document gives an opening date for the center itself.
What local media are saying
Timeline, local time
- Seoul Economic Daily publishes the first report on the MOU signed that afternoon. [ 1 ]
- Newsis and Asia Economy publish reports on the MOU. [ 2 , 3 ]
- Yonhap reports the signing at the Busan City Hall video conference room. [ 4 ]
- Hankook Ilbo reports Hanwha Ocean's statement that the Busan hub does not move Geoje functions. [ 5 ]
- On October 22, CBS NoCut News reports on Geoje's objections to the Busan design hub. [ 8 ]