Samsung Heavy to establish R&D center in Busan

Samsung Heavy Industries is pushing forward with the establishment of a research and development (R&D) center in Busan.

This move is part of the initiative announced by Samsung Group leader Lee Jay-yong to invest 60 trillion won ($46.55 billion) over the next ten years in major sites of Samsung affiliates outside Seoul.

Samsung Heavy Industries signed on Monday a memorandum of understanding (MOU) with the Busan Metropolitan City for the establishment of the Busan Research and Development Center at the Busan City Hall. The signing ceremony was attended by Jung Jin-taek, President and CEO of Samsung Heavy Industries, and Park Heong-joon, Mayor of Busan.

Under the agreement, the shipbuilder will invest 4.8 billion won ($3.72 million) by 2025 to establish a 1,650-square-meter R&D center in Busan. The location is reportedly under consideration near the Knowledge Industry Center in Dong-gu and Nam-gu, Busan.

Samsung Heavy Industries plans to enhance its R&D capabilities in the offshore plant sector through the Busan R&D Center, separate from its Pangyo R&D Center or Daejeon Research Center.

As a result, the company is planning to hire 210 research talents, including ship designers and plant engineering experts, in collaboration with partner companies.

Earlier, Samsung Heavy Industries signed on Mar. 21 an agreement with Pusan National University for digital transformation, manufacturing innovation and securing a specialized workforce.

With the announcement of a $46.55 billion investment plan in local regions, the Samsung Group aims to enhance the competitiveness of local grassroots companies and the industrial ecosystem, create high-quality jobs, promote regional industries and contribute to balanced regional development.

Write to Jae-Fu Kim at hu@hankyung.com