The operational structure of the Busan Future Industry Transition Fund [Busan City]
The operational structure of the Busan Future Industry Transition Fund [Busan City]

The Busan city government announced Monday that DR Axion has become the first local company to receive investment from the Busan Future Industry Transition Fund, marking a visible step toward building a self-sustaining investment ecosystem for regional businesses.

The fund is structured around a mother fund of 395.9 billion won ($267 million) to be raised between 2025 and 2033, with a child fund of 2.33 trillion won channeled into small and midsize companies in the Busan-Ulsan-South Gyeongsang region pursuing green and digital transformation. At least 101.3 billion won will be invested annually in the region, with individual Busan companies eligible to receive between 10 billion and 50 billion won per allocation.

DR Axion, the fund's inaugural investee, is a midsize auto-parts manufacturer with deep roots in Busan, founded in 1979 as Daelim Enterprise. Its core products include cylinder heads and cylinder blocks, and it holds world-class proprietary technology in aluminum precision casting and machining — supplying Hyundai, Kia and other global automakers.

The company has earned national recognition, receiving the government's World Class 300 designation (2016) and Heritage Root Enterprise certification (2016). Busan city has also recognized it with the Busan Employment Award (2015), designation as a strategic industry leading company (2017) and a prestigious local enterprise honor (2026).

City officials said the investment goes beyond a single corporate deal. They expect it to serve as a success model demonstrating that companies can raise capital and grow within the region, and to help curb the migration of Busan-based firms to Greater Seoul.

Building on this first investment, the city plans to accelerate deployment of the fund to supply policy capital to small and midsize companies in the southeastern region for new-industry transitions and business upgrades. The city will promote the fund through online and offline channels to make it accessible to companies with limited experience attracting investment, and will expand on-site briefings and tailored investment consultations.

Lee Tae-hoon, chief executive of DR Axion, said the selection was meaningful. "We are honored to be chosen as the first investment recipient of the Busan Future Industry Transition Fund at the very moment DR Axion is accelerating its transition into the future mobility and electric vehicle industry," he said. "As a company rooted in Busan, we will become a leading midsize future-mobility enterprise that contributes not only to sales growth and job creation but also to the development of the regional economy."

Busan Mayor Jeon Jae-soo called the investment a milestone. "This is the first fruit and a landmark of the Busan Future Industry Transition Fund delivering real results by supporting local companies," he said. "We will invest boldly in high-growth companies to drive corporate innovation and industrial transformation, and build a virtuous investment ecosystem where regional capital flows back into regional businesses — making Busan a city where companies thrive."


kaf2002@heraldcorp.com