BUSAN — Samsung Heavy Industries (010140) will sharply expand its research and development center in Busan and build it into a core base for its offshore plant business. The investment is aimed at handling a surge in design and research work following a large floating liquefied natural gas order in North America, and at securing skilled engineers ahead of demand.
Busan Mayor Jeon Jae-soo and Samsung Heavy Industries Chief Executive Choi Sung-ahn signed a memorandum of understanding at city hall for the expansion of the Busan R&D center, the city government said on the 3rd. Under the agreement, Samsung Heavy Industries will invest 8.6 billion won to relocate the center to the Munhyeon Financial District in Nam-gu, expanding it to about 5,620 square meters of floor space. The company also plans to hire a large number of offshore design and research staff by 2028, when it is scheduled to move in.
The center's role will also be significantly strengthened. Through the expansion, the company intends to broaden its scope of work from design support to sales, research and information technology, turning the site into an integrated design base covering its entire offshore business. Until now, the center has operated mainly as a function supporting detailed design work for the Geoje shipyard.
The investment was prompted directly by the recent FLNG order from Delfin of the United States. After winning the FLNG contract in the North American market, Samsung Heavy Industries is moving faster to secure additional orders and technological competitiveness in offshore plants. Workloads at the center are expected to rise sharply as full-scale design work begins.
Accessibility and access to specialized personnel are also cited as key reasons for the relocation. Busan is geographically close to the company's Geoje shipyard, and 22 universities in the region, including Pusan National University, produce a steady stream of skilled engineers, making it easier to secure talent in the shipbuilding and offshore sectors. The move is also expected to help keep research and development staff in the region rather than losing them to the greater Seoul area.
The investment is significant because it brings a major company's core research functions to the region, rather than simply adding office space. If offshore plant design and research — the high-value segment of shipbuilding — take root in Busan, technology cooperation among local universities, companies and research institutes is expected to become more active.
The city government said it will accelerate efforts to build a research and development ecosystem supporting the eco-friendly and digital transition of the shipbuilding and offshore industries. Along with the relocation of the Ministry of Oceans and Fisheries, the city plans to maximize the clustering of domestic shipbuilding and offshore companies and related institutions in Busan, and to actively attract knowledge service firms and specialized personnel concentrated in the greater Seoul area.
"Leading domestic shipbuilding and offshore companies are gathering in Busan thanks to the synergy from the relocation of the Ministry of Oceans and Fisheries," Jeon said. "Samsung Heavy Industries' investment will strengthen the region's offshore industry ecosystem and create a virtuous cycle that stops young people and highly skilled workers from leaving for the greater Seoul area."
