Table of Contents
- Renault Korea's Strategic Reorganization: Intensifying the Move to Busan
- Current Status of the Giheung Research Institute Sale: Where Are We Now?
- Busan R&D Center: What Functions Will Be Transferred?
- Busan: A New Hub for the Future Automotive Industry
- Conclusion: Giheung is Still, Busan is Just Beginning
- Frequently Asked Questions (FAQ)
Renault Korea's Strategic Reorganization: Intensifying the Move to Busan
Renault Korea plans to establish a future automotive R&D center (tentatively named the Busan Eco-Cluster Center) in the Nogsan Industrial Complex in Gangseo-gu, Busan, by the end of this year. This decision is expected to bring significant changes to the domestic automotive industry.
The establishment of this R&D center is interpreted not just as a simple organizational move, but as an important step in reshaping Renault Korea's medium to long-term strategy in line with the trends of digitalization and electrification. This change is likely to have a positive impact on the future automotive market.
The city of Busan, in September 2021, announced a "Joint Declaration for the Construction of a Future Automotive Ecosystem" with the Renault Group, and in May 2023, signed an MOU for industry-academia cooperation. The establishment of the Busan Eco-Cluster Center is becoming visible by December 2025.
Current Status of the Giheung Research Institute Sale: Where Are We Now?
Renault Korea's R&D center, Renault Technology Korea (RTK), is located in Gyeonggi-do, Yongin, Giheung-gu, in an area of approximately 143,767㎡. It has established itself as an important hub for domestic research and development. However, in May 2023, Renault Korea hinted at the possibility of selling RTK, announcing the establishment of a "New Tech Center" and organizational restructuring during an internal meeting.
Subsequently, in July 2023, NAI Korea was chosen as the firm to oversee the RTK sale, and it was reported that efforts to find a buyer had officially begun. The projected sale price is estimated to be about 200 billion won. Such changes are expected to have a significant impact on Renault Korea's future development direction.
As of July 2025, information on actual transaction prices for the site remains undisclosed. Considering that there have been no changes in the real estate registration history, it can be concluded that the sale has not yet occurred. This indicates that discussions regarding the site sale are still ongoing within Renault Korea, and it is also possible that a conditional sales agreement has been informally established.
The labor union of Renault Korea has expressed its clear opposition to the possibility that the sale proceeds could flow to the headquarters of the Renault Group. Additionally, they argue that any funds from the sale should be used for new vehicle development and facility improvements. This suggests that discussions surrounding the site sale go beyond simple financial transactions and could significantly impact the future direction of the company.
Busan R&D Center: What Functions Will Be Transferred?
Currently, about 1,000 personnel are active in four areas at the Giheung RTK, including vehicle performance, testing, electronics design, and platform development. However, the Busan R&D center is planned to operate by transferring only some core functions from these areas.
Departments likely to be transferred to Busan include the vehicle performance and testing department, electronics design department (including autonomous driving), and parts of the platform development department and vehicle development department. This decision seems aimed at strengthening the research and development capabilities in the Busan region.
The industry forecasts that if the sale of the Giheung R&D center actually takes place, the area of the Busan center could expand to approximately 65,000㎡, which is the current size of the RTK. This change is expected to have a significant impact on the future real estate market.
Busan: A New Hub for the Future Automotive Industry
Renault Korea plans not only to relocate its laboratory but also to collaborate with Busan National University, Busan University of Science and Technology, Dongmyung University, and Shilla University to cultivate talent and jointly develop technology. This increases the potential for Busan to become not only a testbed for not only Renault but for the entire future automotive industry and a global R&D hub.
The city of Busan has expressed its commitment to accelerate the construction of a future automotive industry ecosystem in collaboration with automotive parts cooperatives, local university-industry cooperation groups, and Busan Technopark in collaboration with Renault. These efforts are expected to have a positive impact on the economy and industry of the Busan region.
Conclusion: Giheung is Still, Busan is Just Beginning
Renault Korea's plan for the establishment of the 'New Tech Center' is gradually becoming a reality. However, the sale of the Giheung Research Institute site has not yet been decided, and there is a possibility that the organizational structure and personnel allocation of Renault Korea may change depending on the future situation.
If the R&D center in Busan operates successfully, Busan will establish itself as a hub for future automotive research and development. However, the handling of the existing Giheung research institute is expected to vary according to Renault Korea's medium to long-term strategy, financial health, and the progress of negotiations with labor unions.
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Frequently Asked Questions (FAQ)
Q. What facility is Renault Korea planning to establish in Gangseo-gu, Busan?
Renault Korea plans to establish a future automotive R&D center, the Busan Eco-Cluster Center, in the Nogsan Industrial Complex in Gangseo-gu, Busan, by the end of this year.
The future automotive R&D center set to be built in the Nogsan Industrial Complex in Gangseo-gu, Busan, is a core part of Renault Korea's medium to long-term strategy reshaping, serving as an important hub in response to the transitions in digitalization and electrification. The city of Busan has already established a cooperative relationship with the Renault Group to create a future automotive ecosystem, and by the end of 2025, the center's establishment is becoming more tangible, creating high expectations for substantial changes in the domestic automotive industry.
Q. What is the current status of the sale of the Renault Technology Korea (RTK) research institute located in Giheung?
The sale of Giheung RTK is underway, but as of July 2025, no transactions or registration changes have occurred yet.
After Renault Korea hinted at the possibility of selling RTK in May 2023, NAI Korea was selected as the sales representative, and the search for buyers was initiated. The estimated selling price is approximately 200 billion won. However, since there is still no official real estate transaction information or changes in registration history, it may indicate that internal discussions are still ongoing or a conditional contract has been possibly established. The labor union has expressed opposition to the sale's proceeds flowing to the headquarters.
Q. What functions or departments are expected to be transferred to the Busan R&D center?
The Busan R&D center is planned to transfer vehicle performance and testing, electronics design, some platform functions, and parts of vehicle development.
Currently, about 1,000 research personnel are active at the Giheung RTK, but departments selected for transfer to Busan are focused on core functions. The departments likely to move to Busan include the vehicle performance and testing department, electronics design department including autonomous driving, and parts of both the platform and vehicle development departments. This aims to enhance the research capabilities in Busan, and there are prospects that the area of the center will gradually expand.
Q. What significance does Busan hold in the Renault Korea future automotive industry?
Busan is expected to grow as a global R&D hub for Renault Korea and the future automotive industry along with an industry-academia cooperation hub.
Renault Korea plans to collaborate with local universities such as Busan National University and Busan University of Science and Technology to cultivate talent and jointly develop technology. The city of Busan is also promoting the creation of a future automotive industry ecosystem in partnership with automotive parts cooperatives, industry-academia cooperation groups, etc. With these efforts, Busan is becoming a testing ground for future automotive projects and a key industrial hub. This strategy is expected to positively impact local economic activation and industrial development.
Q. How is Renault Korea's medium to long-term strategy regarding organizational and research institute related developments expected to unfold?
Renault Korea is promoting the establishment of a New Tech Center in Busan, and organizational and personnel arrangements may change based on the status of the Giheung Research Institute sale.
The Busan New Tech Center is planned to be gradually activated, and the sale of the Giheung Research Institute site has not been confirmed yet. During this process, changes in Renault Korea's organizational structure and personnel management are expected, influenced by the negotiations with labor unions and financial health. If the Busan center operates successfully, Busan is projected to establish itself as the center for future automotive R&D.
