From Cryogenic Pumps to Information Security... 19 High-Tech Companies in Busan Turned Technology into Revenue
Innopolis High-Tech Company Designation Program
Supports Local Technology Companies' Growth Through Tax Benefits and Other Measures
High-tech companies in Busan are broadening the region's industrial landscape, traditionally centered on shipbuilding equipment and plants, into areas such as hydrogen and information security.
Companies that go beyond technology development to bring products to market, generate revenue, and reinvest in research and development are making use of the Innopolis high-tech company designation program.
To date, 19 companies in the Busan Innopolis have been designated as high-tech companies. The range of industries has expanded, from companies specializing in liquefied hydrogen refueling systems built around cryogenic pump technology to information security companies developing video data security solutions. The program evaluates not only the quality of a company's technology but also its commercialization track record and capacity to invest in research and development, aligning with the growth paths of local technology companies.
A prominent example is Daeha Co., Ltd., a liquefied hydrogen refueling system company. After receiving a regulatory exemption for testing its cryogenic pump technology in 2024, Daeha pursued technology demonstrations and, on that basis, was designated a high-tech company. The company verified its technology through demonstrations, turned it into a commercial business, and also secured tax benefits.
Over the 2024 and 2025 fiscal years, the company received corporate tax benefits related to its high-tech company designation, reducing its tax bill by approximately KRW 200 million. It plans to reinvest the savings in follow-up research and development and market expansion.
Daeha CEO Heo Gi said, "Demonstrating our technology's capabilities led to commercialization and our designation as a high-tech company." He added, "We plan to use the funds freed up by reducing our tax burden for follow-up research and development and market expansion."
Daeha's case shows how technology demonstrations, commercialization, and tax support can serve not as separate steps but as links in a company's growth. The process starts with verifying the technology, then generates revenue, and channels the funds secured back into technology development.
The reach of the high-tech company program has expanded beyond manufacturing into information security. Pisio Co., Ltd. became the first company in the information security sector to be designated a high-tech company in an Innopolis.
Pisio's technology is LinkShield Aizip V2.0, a solution that optimizes video data in real time and applies IPsec-based secure transmission technology. The company met the designation requirements after its advanced technology and products were verified as being based on national strategic and fundamental technologies.
Customers may find it difficult to directly compare or verify the performance of security technologies. Even companies with outstanding technology may face challenges in objectively demonstrating its capabilities and earning the trust of customers and investors. Designation as a high-tech company through an official process can help address these limitations.
Pisio CEO Kwak Seojun said, "Technology companies often face difficulties when objectively explaining their technological capabilities to customers and investors." He added, "With this high-tech company designation, we plan to enhance trust in our technology and expand our sales channels into domestic and international procurement and defense markets."
The designation is also significant because it shows that the high-tech company program is not limited to a specific industry. As a program previously used mainly by manufacturing and equipment companies expands into digital technology fields such as information security, local technology companies have a wider range of opportunities to benefit from it.
The program designates companies located in an Innopolis that produce and sell products based on advanced technologies and maintain a certain level of investment in research and development.
It differs from a certification that simply verifies whether a technology is excellent. In addition to verifying advanced technologies and products, the program evaluates the share of revenue generated by those technologies and products, as well as the proportion of research and development spending relative to company size. It examines not only whether a company possesses the technology, but also whether it has achieved actual commercialization results and has the capacity to sustain research and development.
Designated companies may receive corporate tax reductions and other tax benefits if they meet the requirements set out in the relevant tax laws. However, whether a company actually receives a reduction and the amount of that reduction depend on individual circumstances, such as when the company was founded and when it generated income. Designation itself does not guarantee the same tax benefits for every company.
This evaluation structure also reflects the realities technology companies face during commercialization. Even successful research and development cannot ensure sustainable growth if it does not lead to product manufacturing and sales. And even when a company generates revenue, it may struggle to respond to market changes if it lacks the resources to invest in further technology development. The high-tech company program aims to narrow this gap by assessing technology, business performance, and investment in research and development together.
Busan's high-tech company landscape is also expanding from shipbuilding equipment into hydrogen, medical devices, and AI.
The 19 high-tech companies in Busan include Donghwa Entec, Halla IMS, DIO, Youngdo Industry, Daeha, Pisio, Dongseo Giyun, Panasia, MITECH, Adcrow, NGM, Nova International, Semyung FNV, MarineWorks, LK Vacuum, Eunkwang Industry, Woomin Technology, Blue Science, and Haewoo Technology.
Technology companies in Busan, which grew on the back of traditional core industries such as shipbuilding equipment and plants, are expanding into hydrogen, medical devices, information security, and artificial intelligence. The high-tech company designations also reflect this industrial transition. As the manufacturing technologies that have supported the region's industrial base are joined by emerging digital technologies, the range of Busan's technology companies is becoming more diverse.
However, technological capabilities alone do not qualify a company for designation. Companies must meet several conditions, including being located in an Innopolis, having their advanced technologies and products verified, and meeting requirements for the share of revenue and research and development spending. Before applying, companies should check whether they have appropriately classified revenue by technology and product, and whether they have calculated research and development spending in accordance with the criteria.
An official at the Busan Innopolis Headquarters noted, "Some companies with excellent technologies have difficulty preparing for designation because they do not systematically manage their revenue and research and development expenses." The official added, "It is important for Innopolis companies pursuing technology commercialization to assess their eligibility in advance and prepare for the necessary requirements step by step."
The success of the high-tech company program cannot be measured by the number of designated companies alone. What matters is whether companies can turn their technologies into actual revenue, continue research and development by making use of tax benefits and other support, and enter new markets.
Daeha's cryogenic pumps and Pisio's information security solution come from different fields, but both face the same challenge: growing technology into a business.
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Companies seeking high-tech company designation can consult the Innopolis Foundation about their eligibility and the application process.
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