
Company H, located in Daegu's Seongseo Industrial Complex, developed a new butterfly valve product for water purification plants in a virtual environment, significantly reducing both costs and development time. By using simulations to verify differences in noise and vibration caused by cavitation reduction devices, the company quickly built a prototype, generating an additional 413 million won in sales and broadening its foothold in public and overseas procurement markets.
Following Company H's example, the Seongseo Industrial Complex is accelerating efforts to strengthen manufacturing competitiveness by integrating artificial intelligence (AI) and digital technologies. Amid this trend, companies are simultaneously enhancing production efficiency and quality while reducing development risks by identifying problems before the prototype stage.

According to the Daegu Metropolitan Government on Wednesday, the Seongseo Industrial Complex is the only complex in Daegu designated as a Smart Green Industrial Complex, attracting a total of 108.5 billion won in investment over the past five years, including 73.5 billion won in state funding. Of this, six projects have been completed, including the AI-Based Process Innovation Simulation Center, the Materials and Components 2.0 Technology Support Center, and the Integrated Control Center, with the remaining project scheduled for completion within the year.
The AI-Based Process Innovation Simulation Center, in particular, serves as the core infrastructure of the Smart Green Industrial Complex and is the largest among six such centers nationwide. Built by remodeling an abandoned factory, it is currently operated under contract by the Industry-Academic Cooperation Foundation of Kyungpook National University (Advanced Information and Communication Convergence Industry Technology Institute).
The center is equipped with advanced facilities including high-performance computing (HPC) infrastructure, around 100 simulation devices, GPU servers, and 3D scanners and printers. Notably, a server equipped with 34 Nvidia GPUs is provided in a cloud format, allowing companies to use it with ease.
Tenant companies can use this infrastructure to validate the entire process — from product design and manufacturing to performance verification — in a virtual environment. "Since various tests can be conducted in a virtual space through simulation before injection molding, trial and error during product development and production can be reduced, significantly cutting time and costs," said Yeo Dong-yeol, principal researcher at the Seongseo Industrial Complex Simulation Center.
The center also features an AI learning environment. Here, AI is applied to design and simulation analysis processes, enabling material changes or image generation to derive optimal products. Over the past three years, the simulation center has provided a total of 257 technology support cases to 182 companies, including Company H.
To further accelerate the digital transformation of the Seongseo Industrial Complex, the Daegu city government is preparing an "AX Demonstration Industrial Complex Project" for manufacturing AI transformation and plans to apply for a government competition next month. The city also intends to expand digital and eco-friendly transformation to other aging industrial complexes in the region, including the No. 3, West Daegu, and Geomdan complexes, building on the achievements of the Seongseo Industrial Complex.
"The Seongseo Industrial Complex is the core hub of Daegu's manufacturing industry, and AI-based digital transformation and high value-added development are essential," said Kim Jung-ki, Acting Mayor of Daegu. "We will actively utilize related infrastructure to enhance the competitiveness of key industries and create a sustainable industrial ecosystem."






