Daejeon is pushing to have a defense materials, parts and equipment (MPE) industrial specialization complex designated as part of a drive to localize advanced defense components and secure technological independence.
With the government’s selection criteria stressing balanced development and ecosystem expansion, Daejeon needs a differentiated strategy that leverages its role as a central growth axis and a concentrated defense R&D hub.
According to Daejeon City and the Ministry of Trade, Industry and Energy, the city submitted its application on April 22 to designate the Daejeon defense MPE specialization complex. The plan would develop advanced defense core-parts production and R&D industrial zones on sites including the Ansan Advanced Defense Industrial Complex and Daedeok Technovalley, covering 8.03 million m² (2.44 million pyeong, about 1,986 acres / 3.10 sq mi).
If designated, the city expects to invest roughly 100 billion KRW (about $75 million) including national and municipal funds to build R&D infrastructure, advance materials and parts technologies, train personnel and support commercialization. The Ministry will complete reviews and evaluations in May–June, with a final decision expected in July.
The main variable is intense competition among local governments. The city has not disclosed specific applicants, but municipalities nationwide — including Ulsan, South Gyeongsang, South Jeolla and North Jeolla provinces — have launched bids to host MPE specialization zones in sectors ranging from shipbuilding and secondary batteries to petrochemicals and mobility.
This is the third round of the program, following selections in 2021 and 2023. In the first round, the government designated sites such as Cheongju, Chungbuk (secondary batteries); Cheonan, Chungnam (displays); Yongin, Gyeonggi (semiconductors); Changwon, Gyeongnam (precision machinery); and Jeonju, Jeonbuk (carbon materials). The second round added sites including Osong, Cheongju (bio MPE); Anseong, Gyeonggi (semiconductor equipment); Busan (power semiconductors); Daegu (mobility motors); and Gwangju (autonomous driving), bringing the total to 10 designated zones.
For this third round, the government has emphasized balanced regional development and ecosystem expansion. Selections will be linked to the regional development strategy known as the five-pole, three-specialty system, with a focus on synergy between representative regional industries and MPE clusters.
Daejeon has tailored its pitch to that framework. City officials argue the designation is necessary given Daejeon’s strategic location and its concentration of defense and R&D infrastructure, including the Defense Acquisition Program Administration. They also highlight the Ansan industrial site the city is developing as a distinctive competitive asset and a mid- to long-term strategic hub.
The MPE specialization complex policy aims to cluster demand and supply companies and innovation institutions in one place to create a stable, long-term, innovative industrial cooperation ecosystem. The ministry says the first and second rounds attracted about 11.5 trillion KRW (about $8.63 billion) in private investment to the designated zones and advanced R&D and commercialization for 15 core MPE technologies.
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