Based on its well-established industrial infrastructure, Daegu City is changing into a competitive city characterized by the advanced nature of its industrial structure derived from a restructuring to an advanced higher-valued textile fashion industry and the development of high value-added and cutting-edge knowledge industries related to traditionally regional key industries, including specialized machinery and metal industries.
|Category||Daegu||Nationwide||Ratio of comparison against nationwide (%)|
|Gross Regional Domestic Product (GRDP) in 2012 (KRW 100 million)||387,510||12,749,893||3.0|
|Number of manufacturers in 2012 (more than 10 persons, companies)||3,230||63,907||5.1|
|Exports in 2013 (USD 1 million)||7,012||559,632||1.3|
|Imports in 2013 (USD 1 million)||3,532||515,586||0.7|
|Economically active population in 2013 (thousand persons)||1,237||25,873||4.8|
|Unemployment rate in 2013 (%)||3.3||3.1|
71.9% service industry, 22.6% mining industry and manufacturing industry, 5.1% construction industry and 0.4% agriculture, forestry & fishery industry
|Item||Number of companies||Number of employees (persons)||Amount of value-added (KRW 1 million)|
|Machinery and metal||1,501||42,849||4,114,361|
|Number of companies|
|Total||Machinery and metal||Textile||Electric and electronic||Others|
|General Industrial Complex||Daegu Dyeing Industrial Complex||846||125||124||-||-||1|
|Geomdan Industrial Complex||782||580||212||26||92||250|
|Dalseong Primary Industrial Complex||4,079||336||104||88||12||132|
|Dalseong Secondary Indutrial Complex||2,707||226||98||15||12||101|
|Seongseo Industrial Complex||12,271||2,852||993||462||179||1,218|
|Publishing and Culture Industrial Complex||243||93||93|
|Hyunpoong Industrial Complex||265||7||1||6|
|Agricultural Industrial Complex||Okpo Industrial Complex||160||54||10||12||2||30|
|Guji Industrial Complex||193||24||1||2||4||17|
|Recycling business district||The 3rd Industrial Complex||1,679||2,557||1,752||79||148||578|
|Seodaegu Industrial Complex||2,662||2,376||366||904||0||1,106|
- Europe: Valeo Pyeong Hwa (auto-parts, France Valeo), Morgan (auto-parts, UK Morgan light), Ahlstrom Korea (auto-parts, Finland Ahlstrom), SHN (auto-parts, Switzerland Rieter), Dassult Systems (software, France).
- Japan: Samick THK (linear motion bearing, THK), Namyang Metals (Hitachi Metal), Pyung Hwa Oilseal (NOK), Korea OSG (OSG), Taiho Corporation of Korea (Taiho).
- US: Delphi Korea (auto-parts, Delphi), Gate Korea (auto-parts, Gate).
- Others: TaeguTec (cutting tools, Israel IMC).
|Item||Total||Manufacturing business||Service business||Trade business|
|Auto-parts||Electrical & electronics||Machinery & metals||Others|
|Number of Companies||490||28||27||42||33||194||166|
The successful foreign-invested companies in Daegu are an eloquent testimony to the outstanding investment environment offered by the city.
TaeguTec’s parent company is IMC, one of the largest cutting tools manufacturers in the world. In May 2006, Berkshire Hathaway, chaired by Warren Buffett, purchased an 80% stake in TaeguTec’s holding company IMC for US$5 billion. Through this acquisition, TaeguTec became the first and only Berkshire Hathaway company in Korea. TaeguTec is perhaps the most representative of the foreign-invested companies in the region. It has solidified its market position as a leading manufacturer of tungsten cutting tools and hard metal tools by introducing pioneering technologies and extensive research and development to ensure it remains the benchmark in the industry.
Valeo Pyeong Hwa co., Ltd was established in 1988, with the aim of becoming a world-leading company, as a joint venture between Pyeong Hwa Clutch Ind. Co, an auto-parts specialist with a long history, and Valeo, a top French auto parts maker. Valeo Pyeong Hwa has earned a solid reputation as the best auto-parts company based on its strong technology and sincere attitude towards its customers. It is a world-leading auto-part supplier for major automobile companies in Korea, the United States, Japan and Europe.
KDAC is a leading automotive component company that was established as a joint venture between Delphi Automotive Systems, the world’s largest supplier of mobile electronics and transportation systems, and Daewoo Motors (50:50). KDAC provides auto-parts based on its superior technology. It is always looking for ways to develop more sophisticated technology with the aim of enhancing its competitiveness in the global market and becoming one of the 10 largest auto-parts suppliers in the world.
Samick THK, Co., Ltd is a stock listed company that was established in Daegu in 1960. Samick prepared the foundation for its growth by selling files and rasps, which are finishing and polishing tools used essentially in the industrial field. After forming a partnership with THK, it began domestic production of a linear motion guide. Through ceaseless efforts to bring about technological innovation and change, it has expanded its business scope to include auto-parts, mechatro and industrial facility automation and, in so doing, has cemented its position as the firm market leader.