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Investment Guide

Investment Environment

Industrial Conditions

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.

Economic Indicators

Economic Indicators
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  

Industrial structure (GRDP as of 2012)

71.9% service industry, 22.6% mining industry and manufacturing industry, 5.1% construction industry and 0.4% agriculture, forestry & fishery industry

Present status of manufacturing industry (companies with more than 10 employees as of 2012)

Present status of manufacturing industry (companies with more than 10 employees as of 2012)
Item Number of companies Number of employees (persons) Amount of value-added (KRW 1 million)
Total 3,230 106,505 9,546,713
Machinery and metal 1,501 42,849 4,114,361
Textile 741 20,270 1,378,856
Automobile 299 16,756 1,598,273
Rubber/ plastic 236 8,333 608,072
Electronics 77 6,291 418,629
Other 612 20,339 2,036,594

Already Established Industrial Complexes: 11 (As of the end of December 2012)

Number of existing industrial complexes: 12 (as of the end of December 2013)
Item Size
(thousand ㎡)
Number of companies
Total Machinery and metal Textile Electric and electronic Others
Total 27,063 9,276 3,672 1,602 452 3,550
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
Esiapolis 1,176 46 11 14 3 18
Publishing and Culture Industrial Complex 243 93        93 
Hyunpoong Industrial Complex   265     
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

Present Status of Foreign Investment (as of the end of March 2014)

Number of foreign-invested companies: 490 companies

Major foreign-invested companies

- 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).

Present Status of Invested Businesses

Present Status of Invested Businesses
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

Main investor countries: Israel, Japan, US, Finland, France, Germany, Switzerland, etc.

Best practices of foreign-invested companies 

 The successful foreign-invested companies in Daegu are an eloquent testimony to the outstanding investment environment offered by the city.



TaeguTecTaeguTec’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


Valeo Pyeong Hwa coValeo 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.


Korea Delphi Automotive Systems Corporation (KDAC)


Korea Delphi Automotive Systems CorporationKDAC 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, COSamick 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.



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