First Investment Company Chosen by Busan Future Industry Transition Fund: DRAXION Selected

The “Busan Future Industry Transition Fund,” established by Busan Metropolitan City, has selected its first investment company, marking the initial step in building a regional corporate investment ecosystem.

On July 20, Busan Metropolitan City announced that it had selected DRAXION, a specialized automobile parts company, as the first local business to receive investment from the Future Industry Transition Fund. As the first investment case since the fund’s launch, this marks the beginning of a virtuous cycle in which a regional company receives local investment and achieves growth.

DRAXION is a mid-sized automotive parts company that began operations in Busan in 1979. It produces key automobile engine components, such as cylinder heads and cylinder blocks, leveraging its expertise in aluminum precision casting and machining to supply parts to both domestic and global automakers, including Hyundai Motor Company and Kia.

Busan Future Industry Transition Fund Operation Structure.

The company has been certified under the government’s World Class 300 program and recognized as an Outstanding Root Company. It has also been named a Leading Company in Busan’s strategic industries and as a prestigious local company. With this investment, DRAXION plans to strengthen its capacity to develop and manufacture lightweight parts for eco-friendly vehicles, in line with the expanding future and electric vehicle markets.

Busan Metropolitan City evaluated this case as the first example demonstrating that, beyond individual corporate support, regional companies can also receive investment and grow locally in Busan. The city plans to actively carry out further investments to assist small and mid-sized enterprises in the southeastern region in transitioning to new industries and advancing their businesses.

To support regional companies that lack experience attracting investment, Busan will also expand information sessions and tailored investment consultations. In collaboration with related organizations, the city aims to improve the utilization of the fund and increase access to investment for local companies.

The city intends to continuously discover and invest in companies with advanced technology and high growth potential, building a regional investment ecosystem where successes lead to increased private investment.

Taehoon Lee, CEO of DRAXION, said, “It is deeply meaningful to be selected as the first investment company for the Busan Future Industry Transition Fund at this pivotal moment of transition to the future automobile industry. We will strive to grow into a future mobility company that contributes to regional economic development through sales growth and job creation.”

Busan Mayor Jaesoo Jeon emphasized, “This investment marks the first achievement of the Busan Future Industry Transition Fund. We will expand investments in companies with high growth potential and create an investment ecosystem in which regional capital circulates into regional companies.”

This content was produced with the assistance of AI translation services.