Gyeongnam Province has reported generating 28.25 billion won in commercial revenue from its second phase of the regional innovation cluster project, which involved an investment of 21.8 billion won. The project has achieved significant milestones in technology localization in the aviation sector, obtaining overseas certifications, and securing supply contracts.
According to Gyeongnam Province on August 4, the initiative was centered around Jinju Innovation City and connected the cities of Sacheon, Hamann, and Goseong, with participation from 23 local companies. The research and development phase is set to run from 2023 to 2025, while non-R&D support and workforce training concluded in April of this year. The total project budget includes 13.9 billion won from the national government and 7.9 billion won from the provincial government.
Key achievements reported by Gyeongnam include commercial revenue of 28.25 billion won and the creation of 142.8 new jobs. Additionally, the project facilitated 20 business attraction cases, trained 85 individuals, provided 99 instances of corporate support, and established 41 global collaborations.
The commercial revenue figure is calculated based on the revenue reported by participating companies, adjusted for the project's contribution rate.
The new job creation figure is expressed in decimal form to reflect the proportional contribution of the project to both full-time and contract employment.
The 20 business attraction cases include not only headquarters relocations but also investment agreements, operational partnerships, and the establishment of factories and research centers.
A Gyeongnam official explained, "Companies assess how much the project contributed to their revenue and submit the data accordingly. It can be challenging to completely separate direct sales generated from R&D projects from the companies' overall sales."
Individual companies have also made strides in technology development. Samwoo Metal Industry Co., based in Changwon, registered a patent for a multifunctional surface treatment technology that enhances the corrosion resistance of aviation parts, along with related process and evaluation technologies.
AeroCotec Co., located in Sacheon, has localized its ion deposition coating technology, which was previously heavily reliant on foreign sources, and obtained NADCAP certification for special processes in the aerospace industry.
AeroCotec has secured a supply contract worth 4.6 billion won and hired nine new employees. Both companies have previously participated as suppliers in the aviation industry and have expanded their business scope into new processes and technologies through this project.
Performance management for the project will be linked to future initiatives. A Gyeongnam official stated, "In R&D, there may be instances where not all goals are achieved during the technology development process. If the evaluation results are unsatisfactory, they will be reflected in the selection process for future projects."
Starting this year, the project scope has expanded from Gyeongnam to the Southeast region. Regional initiatives are being pursued to connect Gyeongnam's aviation parts and materials industry with Busan's marine ICT and Ulsan's electric-driven mobility sectors.
The 'Southeast Regional Innovation Cluster Development Project,' which began this year in collaboration with Busan and Ulsan, is still in its preliminary stages.
While the goal is to integrate Gyeongnam's aviation parts, Busan's marine ICT, and Ulsan's electric-driven mobility, current efforts are limited to individual cooperation between the two provinces. There are no established common core outcomes or specific commercialization plans resulting from the integration of the three regions' industries.
In response, a provincial official noted, "We are currently in discussions regarding common outcomes that the Busan-Ulsan-Gyeongnam region can jointly develop. We will strengthen evaluations, such as reflecting underperforming companies in the selection process for future projects."
Lee Dong-hoon, head of the Aerospace Industry Division in Gyeongnam Province, stated, "We have supported the commercialization of companies' technology development achievements through the regional innovation cluster project. We will continue to enhance the competitiveness of the aviation parts and materials industry by reflecting the needs of businesses in our support efforts."
* This article has been translated by AI.
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