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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 an advanced industrial structure due to its restructure as 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 Contrast ratio against nationwide (%)
2011 GRDP (KRW in billions) 374,532 12,415,821 3.0
2011 manufacturer(more than 10 employees, No. of manufacturer 3,238 63,047 5.1
2012 exports (US$ million) 6,984 547,870 1.3
2012 imports (US$ million) 3,782 519,584 0.7
2012 economically active population (thousand persons) 1,245 25,501 4.9
2012 unemployment rate(%) 3.3 3.2  

Industrial Structure (2011 GRDP Standard)

Service Industry 71.4%, mining and manufacturing industry 22.9%, construction industry 5.3%, agriculture, forestry and fishery industry 0.4%

Current Status of the Manufacturing Industry (2012, more than 10 persons manufacturers)

Current Status of the Manufacturing Industry (2011, more than 10 persons manufacturers)
Category Number of companies (percentage) Number of employees (persons) Amount of added value (KRW million)
Total 3,238 103,417 8,924,662
Machinery/metal 1,504 40.109 3,853,021
Textiles 758 20,568 1,363,208
Cars 284 17,011 1,569,031
Rubber/ plastic 236 8,333 608,072
Electronics 75 5,786 354,453
Other 381 11.610 1,176,877

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

Already Established Industrial Complexes: 11 (As of the End of June 2012)
Category Area(thousand㎡) Number of Companies
Total Machinery/ Metal Textiles Electronic Information Others
Total 26,581 8,661 3,755 1,640 463 2,803
General Industrial Complex Daegu Dyeing Industry Complex 846 127 - 126 - 1
Geomdan Industrial complex 782 558 214 28 89 227
Dalseong Industrial Complex I 4,079 332 127 85 11 109
Dalseong Industrial Complex II 2,716 220 115 15 11 79
Seongseo Industrial Complex 12,268 2,803 1,172 533 194 904
Esiapolis 1,176 32 4 12 4 12
Agricultural Industrial Complex Okpo Industrial Complex 160 54 10 12 2 30
Guji Industrial Complex 193 24 1 2 4 17
Other Type of Industrial Complex The 3 Industrial Complex 1,679 2,558 1,789 80 148 541
Seodaegu Industrial Complex 2,417 1,946 322 747 0 877
Hyeonpung Industrial Complex 265 7 1 6

Foreign Investment as of the end of March, 2013.

Number of Foreign-invested companies: 485 companies.

Major foreign-invested companies

- Europe: Valeo Pyeong Hwa (auto-parts, France, Valeo), Morgan (auto-parts, UK, Morgan Light), HSL (auto-parts, Germany, Hella), Ahlstrom Korea (auto-parts, Finland, Ahlstrom), Rieter-DK (auto-parts, Switzerland, Rieter) , Dassault Systems (software, France),  GS Hot-Stamping (auto-parts, Germany).

- Japan: SamickTHK (linear motion bearing, THK), Namyang Metals (Hitachi Metal), Pyung Hwa Oilseal (NOK),  Korea OSG (OSG), Taiho.

- US: Delphi Korea (auto-parts, Delphi), Gate Korea (auto-parts, Gate).

- Others: TaeguTec (cutting tools, Israel IMC).

Invested businesses: machinery•metal, auto-parts.

Number of foreign-invested companies by business

Investment status by business
Type Total    Manufacture Service Trade
Auto-parts Electronic Machinary metal Other
Number of Companies 405 28 22 35 28 159 133

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

Successful Case of a Foreign-Invested Company 

 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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