Daiichi Institution Industry Co., a mid-size engineering and construction services company in Japan, will invest $10 million to build a new production facility in Busan, becoming the first Japanese business in two years to promote facility investment in South Korea’s largest port city.

According to Busan Metropolitan City and Daiichi Institution Industry, the two parties on Tuesday signed a memorandum of understanding that Daiichi Institution Industry will invest $10 million to build a manufacturing factory with a floor area of 9,917 square meters in Mieum foreign investment zone in Gangseo-gu, Busan.

Daiichi Institution Industry, a manufacturer of clean transporting system for semiconductors, accounts for more than 80 percent of the related global market. The company is a supplier to major Korean companies including Samsung, LG, and CJ.

It is the first time in two years for a Japanese company to promote large-scale, fresh investment in Busan. Japanese companies have been reluctant to invest not only in Busan but across Korea, citing concerns over sensitive issues such as one involving “comfort women” or Korean women that were forced into sexual slavery for Japanese soldiers during World War II, as well as growing warfare crisis on the Korean peninsula.

An unnamed official from Busan Metropolitan City said Daiichi Institution Industry plans to place priority in hiring regional talent and nurture and support potential ventures with high technical skills.

Shinohara Osamu, chief executive of Daiichi Institution Industry, has been well known for his role in boosting business ties between Korean and Japanese companies. He currently chairs a business council based in Kyushu, Japan that focuses on forging partnership and exchange between Korean and Japanese businesses.

By Park Dong-min and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]