Daejeon’s Defense Industry Transformation: What the 2028 Relocation Means for Local Economy

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On the 30th, Daejeon Mayor Lee Jang-woo temporarily stepped aside from his official duties (suspended) to formally begin his campaign for the June 3 local elections. 

“Over the past three years and ten months, Daejeon has undergone significant change,” he said, adding that he plans to register as a candidate at about 5:50 p.m. following the press briefing. 

At the briefing, Kuki News asked about the timeline for fully relocating the Defense Acquisition Program Administration (DAPA) to Daejeon and about the expected benefits of a Defense Semiconductor Center and DAPA’s move. 

Mayor Lee said that, early in his term, DAPA and the central government committed to the relocation and promptly applied for both basic and implementation design funding. After a number of setbacks, a DAPA task force moved first, he said, and he expects the DAPA building to be completed in 2028, at which point the agency will relocate fully. 

He stressed that South Korea currently depends heavily on imported defense semiconductors, but that the planned Defense Semiconductor Center in Daejeon will enable research, development and production locally, and that the city is already making measurable progress toward that goal. 

He added that the defense industry is likely to take a major leap forward centered on Daejeon once DAPA is established here, creating jobs and helping position the city as a leading economic center. 

Pointing to the failed effort to block the Ministry of SMEs and Startups’ move to Sejong under the previous administration, he said that during the Moon Jae-in government the National Assembly speaker, the justice minister, Democratic Party lawmakers and district mayors intervened but were unable to stop the relocation, and the ministry was simply handed over to Sejong. He argued that attracting DAPA—which has far greater impact than the Ministry of SMEs and Startups—will be a powerful driver of Daejeon’s development. 

On the People Power Party’s internal difficulties, he said that while voters may raise valid concerns, dividing the party ahead of an election is wrong, and that all members, including leader Jang Dong-hyeok, should stand united. 

He concluded that, after resolving long-standing issues—breaking ground on the tram after 28 years, completing Doan Lake Park, and finishing the Yuseong complex terminal, a project left undone for 12 years across his eight years as Yuseong district mayor and four years as Daejeon mayor—he is convinced that the people who get things done are those who work hard.