Korea Defense Industries to Build 170-Football-Field Factory in Yeongju

Korea Defense Industries, an emerging powerhouse in Korea's defense sector, will invest in manufacturing facilities on a vast site equivalent to 170 football fields in Yeongju, North Gyeongsang Province.

According to the North Gyeongsang Provincial Government on Thursday, the province, Yeongju City, and Korea Defense Industries signed a memorandum of understanding on the investment at Yeongju City Hall.

Under the agreement, Korea Defense Industries will invest 220 billion won ($153 million) by 2031 to build a state-of-the-art defense manufacturing plant on approximately 1.22 million square meters of land in Munsu-myeon, Yeongju.

This marks the largest investment attraction in Yeongju's history, and the provincial government expects it to serve as a turning point for the city to emerge as a hub for the defense industry, a national strategic sector.

Korea Defense Industries was established by personnel who spun off from Hanwha's defense business division.

The company mass-produces weapons systems including 230mm guided and unguided multiple launch rocket systems, fuses, and warheads, while also developing drones and engineering munitions.

Headquartered in Sejong with factories in Daejeon, Boeun, and Gumi, Korea Defense Industries is projected to post revenue of more than 600 billion won this year, more than double the previous year.

Yeongju City expects the investment to create approximately 400 new jobs, increase the resident population by more than 650, employ more than 2,000 construction workers, generate 26.3 billion won in local tax revenue, and produce 415.5 billion won in production-inducing effects, revitalizing the stagnant local economy.

"Through the construction of the Yeongju plant, we will significantly expand production capacity and establish a global-level defense production base to contribute to the development of national strategic industries," Korea Defense Industries CEO Jeong Jeong-mo said at the signing ceremony.

"Yeongju is growing into an advanced defense industry city combining drones, aviation, and defense," North Gyeongsang Province Governor Lee Cheol-woo said. "This investment will play a decisive role in expanding the manufacturing ecosystem in the northern region and attracting population to the area."